W-2 Form

The W-2 is your employer's official record of what they paid you and what taxes they withheld. You need it to file your tax return every year.

What's On Your W-2:

Box 1: Wages, tips, other compensation Your total taxable wages (after pre-tax deductions like 401k, health insurance)

Box 2: Federal income tax withheld Total federal taxes your employer sent to the IRS on your behalf

Box 3: Social Security wages Wages subject to Social Security tax (max $168,600 in 2025)

Box 4: Social Security tax withheld 6.2% of Box 3 (you pay this, employer matches it)

Box 5: Medicare wages Usually same as Box 1

Box 6: Medicare tax withheld 1.45% of Box 5 (2.35% if you earn over $200k/$250k married)

Boxes 12a-12d: Other compensation Codes for 401k contributions, HSA, life insurance, etc.

Box 16: State wages Box 17: State income tax withheld

When You Get It: Employers must mail/provide W-2s by January 31. If you don't receive it by mid-February, contact your employer or IRS.

What to Do With It:

1. Verify accuracy (does it match your final paystub?)
2. Use it to file your tax return
3. Keep it with tax records for 7 years

Common W-2 Issues:

Box 1 Lower Than Gross Pay: This is NORMAL. Pre-tax deductions (401k, health insurance, HSA, FSA) reduce Box 1 but not your gross pay.

Example:

• Gross pay: $80,000
• 401k contribution: $10,000 (pre-tax)
• Health insurance: $3,000 (pre-tax)
• Box 1 Wages: $67,000

Incorrect W-2: If employer makes an error, they must issue a W-2c (corrected) form. Contact payroll immediately if you spot mistakes.

Multiple W-2s: Worked multiple jobs? You'll get a W-2 from each employer. Add them all up when filing taxes.

Lost W-2:

1. Contact employer for reissue
2. If employer unresponsive, request transcript from IRS
3. File Form 4852 (substitute W-2) as last resort

W-2 vs. 1099:

• W-2: You're an employee (taxes withheld automatically)
• 1099-NEC: You're a contractor (you pay taxes yourself quarterly)

Self-Employed: No W-2! You file Schedule C with your tax return and pay self-employment tax.

Digital W-2s: Many employers provide electronic W-2s. Download and save PDF—don't rely on accessing their portal years later.