What Is a W-2 Form? A Box-by-Box Guide To Reading It
A W-2 is the IRS Wage and Tax Statement your employer must send by Jan. 31 each year, showing your total pay and how much federal, state, Social Security and Medicare tax was withheld from your paychecks.
If Jan. 31 falls on a weekend or holiday, the deadline shifts to the next business day, which pushed the 2025 tax-year W-2 deadline to Feb. 2, 2026.
You'll need this form, along with any 1099 forms for side income, as part of filing your taxes accurately.
Key Takeaways
W-2s are due by Jan. 31 each year, adjusted to the next business day when that date lands on a weekend or holiday, as it did for the 2025 tax year (Feb. 2, 2026).
Box 1 and Box 3 rarely match. Box 1 shows taxable wages after pretax deductions like 401(k) contributions, while Box 3 shows Social Security wages, which are capped at $184,500 for 2026.
Employees get a W-2. Independent contractors get a 1099. Some workers receive both if they hold a job and freelance on the side.
Lost your W-2? The IRS offers a free Wage and Income Transcript covering the current year plus roughly the past 10 years, though it won't include state or local wage details.
Tip income in Box 7 now matters more than ever, since it's the basis for the federal "no tax on tips" deduction available for tax years 2025 through 2028.
Spot an error? Contact your employer right away. They must issue a corrected Form W-2c before you file your return.
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What Is a W-2 Form?
A W-2, short for Wage and Tax Statement, is the form employers must file with the Social Security Administration for every employee who earned wages, salary or other taxable compensation during the year. It also gets sent to you so you can complete your federal and state tax returns.
The form covers your employer's information, your total earnings, taxes withheld from each paycheck, and details on benefits like 401(k) or health savings account contributions your employer made on your behalf.
Who Files a W-2, and When Do You Get It?
Employers file a Form W-2 for every employee who received a salary, wage or other compensation during the year, and they must furnish your copy and file with the Social Security Administration by Jan. 31. Many employers post digital W-2s through payroll portals like ADP or Workday in mid-January, ahead of that deadline, while mailed copies can take a little longer to arrive. It's smart to check your mailbox or employee portal by early February.
If you haven't received your W-2 by mid-February, contact your employer's payroll department first. If that doesn't work, the IRS can produce a free Wage and Income Transcript showing the federal wage and withholding data reported under your Social Security number, generally available for the current year plus the prior 10 years. That transcript won't include state or local tax details, so if you need those specifically, ask your employer or payroll provider for a reissued copy.
W-2 vs. 1099: What's the Difference?
Whether you receive a W-2 or a 1099 depends on how you're classified at work.
Form | Who Receives It | What It Reports | Tax Withholding |
|---|---|---|---|
W-2 | Employees | Wages, tips, bonuses and benefits | Employer withholds federal, state and FICA taxes throughout the year |
1099 | Independent contractors, freelancers and gig workers | Nonemployee compensation, interest, dividends or other income | No withholding. The worker typically pays estimated taxes directly |
Some people receive both forms in the same year, for example if they work a full-time job and also take on freelance or gig work. Unless you hold more than one employer relationship, you'll only receive one W-2 per employer.
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How To Read a W-2, Box by Box
The W-2 can look intimidating at first glance, but each box has a specific purpose.
Boxes A through F. These identify your employer, including its federal identification number, along with your name and address.
Box 1: Wages, tips, other compensation. This is your taxable income for the year, including salary, tips and bonuses, after certain pretax deductions, and it's the starting figure used to determine which tax bracket you fall into.
Box 2: Federal income tax withheld. The total federal tax your employer withheld from your paychecks throughout the year.
Boxes 3 and 4: Social Security wages and tax withheld. Box 3 reports wages subject to Social Security tax, capped at $184,500 for 2026, up from $176,100 in 2025. Box 4 shows the 6.2% withheld from those wages.
Boxes 5 and 6: Medicare wages and tax withheld. Medicare has no wage cap, so Box 5 often runs higher than Box 3 for top earners. Box 6 shows the 1.45% Medicare tax withheld. These figures reflect taxes your employer pays on your behalf alongside your own withholding.
Boxes 3 and 5 may not match Box 1, largely because of pretax 401(k) or HSA contributions that reduce taxable wages but not Social Security or Medicare wages.
Boxes 7 and 8: Tips. Box 7 shows Social Security tips you reported to your employer, and Box 8 shows any tips allocated to you. Box 7 is also the starting point many tipped workers use to calculate the federal "no tax on tips" deduction, worth up to $25,000 annually for tax years 2025 through 2028, subject to income limits.
Box 9. No longer used.
Box 10: Dependent care benefits. Any employer-provided dependent care assistance.
Box 11: Deferred compensation. Distributions from a nonqualified deferred compensation plan.
Box 12: Coded compensation and deductions. This often includes 401(k) or HSA contributions and group life insurance costs, each tied to a specific letter code. Comparing this box against your 401(k) balance can help confirm your contributions were recorded correctly.
Box 13: Special statuses. Checked if you're a statutory employee, participated in a retirement plan, or received third-party sick pay.
Box 14: Other. A catchall for items like union dues or insurance premiums that don't fit elsewhere.
Boxes 15 through 20: State and local taxes. These mirror the federal wage and withholding boxes but for state and local jurisdictions. If you worked in more than two states or localities, your employer will issue an additional W-2.
What To Do if Your W-2 Is Wrong
Review your W-2 as soon as you receive it, since mistakes in your name, Social Security number or wage amounts can delay your return or trigger IRS correspondence.
Check the basics first. Confirm your name, address and Social Security number match your records.
Compare wages to your final pay stub. Your year-end pay stub should reasonably match Box 1, accounting for pretax deductions.
Contact your employer immediately if you spot an error. They're required to issue a corrected Form W-2c.
Wait for the corrected form before filing, when possible, to avoid needing to amend your return later.
File anyway if the deadline is close and your employer hasn't responded. You can use your last pay stub to estimate wages and work with a tax professional on next steps.
The Bottom Line
A W-2 tells the IRS, and you, exactly what you earned and what was withheld for taxes in a given year, and employers must send it by Jan. 31 (or the next business day when that date falls on a weekend). Reviewing each box, especially the wage and tip fields that now feed into deductions like "no tax on tips," can help you file an accurate return, avoid surprises and put you in a better position to maximize your tax refund.
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Key Terms
W-2 (Wage and Tax Statement): The IRS form employers issue annually reporting an employee's wages and tax withholding.
1099: A form reporting income paid to independent contractors, freelancers or other non-employees, with no tax withheld.
FICA tax: Shorthand for Social Security and Medicare taxes, withheld under the Federal Insurance Contributions Act.
Withholding: The portion of your pay your employer sends directly to the IRS and state tax agencies on your behalf.
Statutory employee: A worker treated as an employee for certain tax purposes even though they may operate more like a contractor. Statutory employees aren't subject to federal income tax withholding.
Wage and Income Transcript: A free IRS record showing the federal wage and withholding data reported under your Social Security number, available if you lose your W-2.
No Tax on Tips deduction: A federal deduction of up to $25,000 a year on qualified tips, available for tax years 2025 through 2028, subject to income phaseouts.
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Sources
IRS: Topic no. 159, How To Get a Wage and Income Transcript or Copy of Form W-2
Social Security Administration: Contribution and Benefit Base
Summary generated by AI, verified by MoneyLion editors
FAQ
Here are quick answers to common questions about Form W-2.:
When do W-2s come out?
Employers must furnish W-2s to employees and file them with the Social Security Administration by Jan. 31 each year. When that date falls on a weekend or holiday, the deadline moves to the next business day, which pushed the 2025 tax-year deadline to Feb. 2, 2026. Many employers post digital copies through payroll portals a few weeks earlier.
What should I do if my employer never sends my W-2?
Contact your employer's payroll or HR department first, since a reissue is usually the fastest fix. If you still don't have your W-2 by mid-February, you can request a free Wage and Income Transcript from the IRS showing your reported federal wages and withholding, or ask your employer for a duplicate through their payroll provider.
Can I get a copy of my W-2 from the IRS?
The IRS doesn't keep an actual copy of your W-2 unless you attached one to a paper tax return you filed. What it can provide is a free Wage and Income Transcript summarizing the federal wage and withholding data your employer reported, available for the current year plus roughly the past 10 years. That transcript doesn't include state or local tax information.
What's the difference between a W-2 and a 1099?
A W-2 goes to employees and reports wages with taxes already withheld by the employer. A 1099 goes to independent contractors, freelancers or other non-employees and reports income with no tax withheld, meaning the recipient is generally responsible for paying estimated taxes directly. Some people receive both if they hold a job and do freelance work on the side.
Why don't my Box 1 and Box 3 wages match on my W-2?
Box 1 reports taxable wages after certain pretax deductions, such as traditional 401(k) or HSA contributions, are subtracted. Box 3 reports Social Security wages, which don't get reduced by those same pretax deductions and are capped at $184,500 for 2026. That's why the two figures often differ, even though they come from the same paycheck.
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