What Is a W-2? The Employee Tax Form Explained
Last updated 04/09/2026 by
Ante Mazalin
Edited by
Andrew Latham
Summary:
A W-2 (Wage and Tax Statement) is a tax form your employer is required to send you by January 31 each year, reporting your total wages earned and taxes withheld during the prior tax year — the foundation of filing your federal income tax return.
It contains several key figures.
- Box 1 (Wages): Your total taxable wages for the year — the number that goes on your Form 1040 and determines what you owe.
- Box 2 (Federal income tax withheld): The total federal taxes your employer already paid on your behalf — applied as a credit against your tax liability when you file.
- Boxes 3–6 (Social Security and Medicare): Social Security wages and tax withheld (6.2% up to the wage base), and Medicare wages and tax withheld (1.45%, with an additional 0.9% on high earners).
Most employees receive their W-2 and are surprised to find their Box 1 wages are lower than their total paycheck earnings for the year. This is normal — pre-tax contributions to a 401(k), health insurance premiums, and HSA contributions reduce your taxable wages before Box 1 is calculated.
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When You Receive Your W-2
Employers are legally required to postmark or electronically deliver W-2 forms by January 31 each year. You should receive yours by early February. If you haven’t received it by mid-February, contact your employer’s payroll department first — then the IRS if necessary.
If you no longer work for the employer, they must still send your W-2 to your last known address. Updating your address before year-end ensures it arrives without delay.
How to Read Your W-2: Box by Box
| Box | What It Reports | Used On |
|---|---|---|
| 1 | Total taxable wages, tips, and other compensation | Form 1040, Line 1 |
| 2 | Federal income tax withheld | Tax credit on Form 1040 |
| 3 | Social Security wages (up to $168,600 in 2024) | Social Security tax calculation |
| 4 | Social Security tax withheld (6.2% of Box 3) | Verification only |
| 5 | Medicare wages (no wage cap) | Medicare tax calculation |
| 6 | Medicare tax withheld (1.45% of Box 5) | Verification / Additional Medicare Tax |
| 12 | Various codes: 401(k) deferrals (D), HSA (W), non-taxable benefits | Varies by code |
| 17 | State income tax withheld | State tax return |
Why Box 1 Is Lower Than Your Salary
Box 1 reflects taxable wages — your gross pay minus any pre-tax deductions. Common reductions include:
- Traditional 401(k) or 403(b) contributions
- Health, dental, and vision insurance premiums paid through a Section 125 cafeteria plan
- HSA contributions made through payroll
- Dependent care FSA contributions
- Commuter benefit deductions
Roth 401(k) contributions do not reduce Box 1, since they’re made with after-tax dollars.
Pro Tip: Cross-check Box 2 (federal withholding) against your last pay stub’s year-to-date federal tax column. They should match exactly. A discrepancy may indicate a payroll error. Also verify that your name, address, and Social Security number are correct — errors here can cause issues with the IRS matching your return to your Social Security record, potentially delaying your refund.
W-2 vs. W-4 vs. 1099
| Form | What It Is | Who Completes It | When |
|---|---|---|---|
| W-2 | Reports wages and taxes withheld | Employer sends to employee and IRS | By January 31 each year |
| W-4 | Tells employer how much to withhold | Employee fills out and gives to employer | When hired or when withholding changes |
| 1099 | Reports non-wage income (freelance, dividends, etc.) | Payer sends to recipient and IRS | By January 31 each year |
What to Do If Your W-2 Is Wrong
If any information on your W-2 is incorrect — wrong wages, SSN, name, or withholding amount — contact your employer immediately and request a corrected W-2 (Form W-2c). Employers must provide corrections promptly.
If you file before receiving a correction, you may need to file an amended return using Form 1040-X.
Key takeaways
- Your employer must send your W-2 by January 31. It reports total taxable wages (Box 1) and all taxes withheld for the year.
- Box 1 is typically lower than your total salary because pre-tax 401(k), health insurance, and HSA contributions reduce taxable wages before it’s calculated.
- Box 2 (federal income tax withheld) is a direct credit against what you owe when you file — a high Box 2 means a larger refund or smaller balance due.
- Social Security tax (6.2%) applies only up to the annual wage base ($168,600 in 2024). Medicare tax (1.45%) has no cap, with an additional 0.9% on wages above $200,000.
- Errors on your W-2 should be corrected before filing. Request a W-2c from your employer; if already filed, correct with Form 1040-X.
Frequently Asked Questions
What if I don’t receive my W-2?
Contact your employer first. If you still haven’t received it by February 15, call the IRS at 1-800-829-1040 — they can contact your employer on your behalf. As a last resort, you can file using Form 4852 (a substitute W-2) based on your final pay stub, but this may delay processing.
How many W-2s will I receive?
You receive one W-2 per employer you worked for during the year. If you held multiple jobs, you’ll have multiple W-2s. All must be reported when filing your federal return — each employer’s wages and withholding are added together on your Form 1040.
Can I file my taxes without my W-2?
You can request an extension to file, or use Form 4852 as a substitute based on your final pay stub. However, filing without your actual W-2 increases the risk of errors and IRS notices. The IRS receives a copy of your W-2 directly from your employer — if your return doesn’t match their records, it can trigger a review. See How to File Taxes Without a W-2 for step-by-step guidance.
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