If you are an employee in the United States, you are probably familiar with the IRS tax form W-2. This form is an important document that shows your annual wages and tax withholdings. Employers are required to send W-2 forms to their employees by January 31st of each year. In this article, we will provide you with a roadmap to understanding tax form W-2, how to read it, and what to do with it.
What is IRS Tax Form W-2?
The IRS tax form W-2 is a document that reports an employee’s annual wages, tips, and other compensation, as well as federal, state, and other taxes that have been withheld from their paychecks. Your employer is required by law to provide you with a W-2 by January 31st of each year.
What Information is on Form W-2?
Form W-2 contains important information that you will need to file your tax return, including:
Box 1: Wages, Tips, and Other Compensation
This box shows your total taxable wages, tips, and other compensation earned during the year.
Box 2: Federal Income Tax Withheld
This box shows the amount of federal income tax your employer withheld from your paychecks during the year.
Box 3: Social Security Wages
This box shows your total wages subject to Social Security tax.
Box 4: Social Security Tax Withheld
This box shows the amount of Social Security tax your employer withheld from your paychecks during the year.
Box 5: Medicare Wages and Tips
This box shows your total wages subject to Medicare tax.
Box 6: Medicare Tax Withheld
This box shows the amount of Medicare tax your employer withheld from your paychecks during the year.
Box 7: Social Security Tips
This box shows the amount of tips you reported to your employer that are subject to Social Security tax.
Box 8: Allocated Tips
This box shows the amount of tips allocated to you by your employer, which are subject to Social Security and Medicare taxes.
Box 9: Blank
This box is currently unused.
Box 10: Dependent Care Benefits
This box shows the amount of dependent care benefits provided by your employer.
Box 11: Nonqualified Plans
This box shows the amount of distributions you received from a nonqualified deferred compensation plan or non-governmental Section 457 plan.
Box 12: Codes
This box contains a series of codes and corresponding dollar amounts that describe other compensation, such as employer-provided health insurance, retirement plan contributions, and deferred compensation.
Box 13: Checkboxes
This box contains three checkboxes that indicate whether you participated in a retirement plan, received third-party sick pay, or are a statutory employee.
Box 14: Other
This box can be used by your employer to report any additional state or local taxes that were withheld from your paychecks.
Box 15-20: State and Local Tax Information
These boxes report the amount of state and local taxes that were withheld from your paychecks.
How Do I Read Form W-2?
Reading form W-2 may seem daunting at first, but it is a simple process once you know what to look for. Here is a step-by-step guide to reading your W-2 form:
Step 1: Review Your Personal Information
Make sure your name, address, and Social Security number are correct.
Step 2: Review Your Wages and Taxes
Review boxes 1-6 to ensure that your wages and taxes are accurately reported.
Step 3: Review Box 12 Codes
Review Box 12 codes to see if any other compensation, such as employer-paid health insurance or retirement plan contributions, has been reported.
Step 4: Review State and Local Tax Information
If you live in a state that has income tax, review boxes 15-20 to ensure that your state and local taxes are accurately reported.
What Should I Do with Form W-2?
Once you have received your form W-2, here are some steps you should take:
Step 1: Review It Carefully
Make sure that all the information on your form W-2 is accurate and matches your records.
Step 2: Keep It for Your Records
Keep your form W-2 with your other tax documents for at least three years.
Step 3: Use It to File Your Tax Return
Use the information on your form W-2 to file your federal and state income tax return.
FAQs:
Q: What happens if I don’t receive my W-2 form by January 31st?
A: If you haven’t received your W-2 form by February 15th, contact your employer to request a copy.
Q: What should I do if I think there is an error on my W-2 form?
A: Contact your employer to discuss any discrepancies and request a corrected W-2 if necessary.
Q: Do I need to attach my W-2 form to my tax return?
A: No, you don’t need to attach your W-2 form to your tax return. However, you should keep it with your other tax documents for at least three years.
Q: What if I worked for multiple employers during the year?
A: You should receive a W-2 form from each employer you worked for during the year.
Q: Can I still file my tax return if I haven’t received my W-2 form?
A: Yes, you can still file your tax return if you haven’t received your W-2 form. You can use Form 4852, Substitute for Form W-2, Wage and Tax Statement, to estimate your wages and taxes.
Q: What if I lost my W-2 form?
A: Contact your employer to request a copy of your W-2 form.
Q: What if I received a W-2 form for a job I didn’t have?
A: Contact the employer to correct the error and request a corrected W-2 if necessary.
Q: Can I file my tax return electronically if I received a corrected W-2 form after I already filed?
A: No, you must file a paper tax return if you receive a corrected W-2 form after you have already filed your tax return.
Q: What if I need a copy of my W-2 form from a previous year?
A: Contact your employer or the Social Security Administration to request a copy of your W-2 form.
Q: Can I use a W-2 form from a previous year to file my tax return?
A: No, you must use the W-2 form for the tax year you are filing.
Q: Will I receive a W-2 form if I was paid as an independent contractor?
A: No, independent contractors receive Form 1099-MISC instead of Form W-2.
Conclusion
Form W-2 is an important document that shows your annual wages and tax withholdings. It is important to review your W-2 carefully for accuracy and keep it with your other tax documents for at least three years. If you have any questions or concerns about your W-2 form, contact your employer or a tax professional.
