The IRS W-2 form is a crucial document that reports an employee's annual wages and the amount of taxes withheld from their paycheck. Employers must send this form to their employees and the Internal Revenue Service (IRS) at the beginning of each year. Understanding how to interpret and fill out this form is key to ensuring accurate tax submissions. To make this process easier, consider using the available resources by clicking the button below.
Every year, millions of employees and employers navigate the complexities of tax reporting, with the IRS W-2 form sitting at the heart of the process for reporting wages and taxes withheld from employees' paychecks. This crucial document not only serves as a record of an individual's annual earnings but also details the amount of federal, state, and other taxes withheld by the employer over the course of the year. Its significance extends beyond the individual, playing a vital role in the IRS's ability to assess and collect taxes efficiently. For businesses, the accurate completion and timely distribution of W-2 forms are essential legal responsibilities, reflecting on their compliance with federal tax laws. To employees, the W-2 is a necessary piece of the puzzle in preparing their personal tax returns, potentially affecting their tax liability or refund. With sections dedicated to various types of income and tax deductions, including retirement plan contributions and dependent care benefits, the W-2 form encompasses major aspects of individual and corporate fiscal responsibilities and incentives.
Attention:
You may file Forms W-2 and W-3 electronically on the SSA’s Employer W-2 Filing Instructions and Information web page, which is also accessible at www.socialsecurity.gov/employer. You can create fill-in versions of Forms W-2 and W-3 for filing with SSA. You may also print out copies for filing with state or local governments, distribution to your employees, and for your records.
Note: Copy A of this form is provided for informational purposes only. Copy A appears in red, similar to the official IRS form. The official printed version of this IRS form is scannable, but the online version of it, printed from this website, is not. Do not print and file Copy A downloaded from this website with the SSA; a penalty may be imposed for filing forms that can’t be scanned. See the penalties section in the current General Instructions for Forms W-2 and W-3, available at www.irs.gov/w2, for more information.
Please note that Copy B and other copies of this form, which appear in black, may be downloaded, filled in, and printed and used to satisfy the requirement to provide the information to the recipient.
To order official IRS information returns such as Forms W-2 and W-3, which include a scannable Copy A for filing, go to IRS’ Online Ordering for Information Returns and Employer Returns page, or visit www.irs.gov/orderforms and click on Employer and Information returns. We’ll mail you the scannable forms and any other products you order.
See IRS Publications 1141, 1167, and 1179 for more information about printing these tax forms.
22222
VOID
a
Employee’s social security number
For Official Use Only ▶
OMB No. 1545-0008
b Employer identification number (EIN)
1 Wages, tips, other compensation
2 Federal income tax withheld
c Employer’s name, address, and ZIP code
3
Social security wages
4 Social security tax withheld
5 Medicare wages and tips
6
Medicare tax withheld
7
Social security tips
8
Allocated tips
d Control number
9
10
Dependent care benefits
e Employee’s first name and initial
Last name
Suff.
11
Nonqualified plans
12a See instructions for box 12
C
o
d
e
13
Statutory
Retirement
Third-party
12b
employee
plan
sick pay
14 Other
12c
12d
f Employee’s address and ZIP code
15 State Employer’s state ID number
16 State wages, tips, etc.
17 State income tax
18 Local wages, tips, etc.
19 Local income tax
20 Locality name
Form W-2 Wage and Tax Statement
2021
Department of the Treasury—Internal Revenue Service
For Privacy Act and Paperwork Reduction
Copy A—For Social Security Administration. Send this entire page with
Act Notice, see the separate instructions.
Form W-3 to the Social Security Administration; photocopies are not acceptable.
Cat. No. 10134D
Do Not Cut, Fold, or Staple Forms on This Page
a Employee’s social security number
12a
Copy 1—For State, City, or Local Tax Department
Safe, accurate,
Visit the IRS website at
FAST! Use
www.irs.gov/efile
Copy B—To Be Filed With Employee’s FEDERAL Tax Return.
This information is being furnished to the Internal Revenue Service.
Notice to Employee
Do you have to file? Refer to the Instructions for Forms 1040 and 1040-SR to determine if you are required to file a tax return. Even if you don’t have to file a tax return, you may be eligible for a refund if box 2 shows an amount or if you are eligible for any credit.
Earned income credit (EIC). You may be able to take the EIC for 2021 if your adjusted gross income (AGI) is less than a certain amount. The amount of the credit is based on income and family size. Workers without children could qualify for a smaller credit. You and any qualifying children must have valid social security numbers (SSNs). You can’t take the EIC if your investment income is more than the specified amount for 2021 or if income is earned for services provided while you were an inmate at a penal institution. For 2021 income limits and more information, visit www.irs.gov/EITC. See also Pub. 596, Earned Income Credit. Any EIC that is more than your tax liability is refunded to you, but only if you file a tax return.
Employee’s social security number (SSN). For your protection, this form may show only the last four digits of your SSN. However, your employer has reported your complete SSN to the IRS and SSA.
Clergy and religious workers. If you aren’t subject to social security and Medicare taxes, see Pub. 517, Social Security and Other Information for Members of the Clergy and Religious Workers.
Corrections. If your name, SSN, or address is incorrect, correct Copies B, C, and 2 and ask your employer to correct your employment record. Be sure to ask the employer to file Form W-2c, Corrected Wage and Tax Statement, with the Social Security Administration (SSA) to correct any name, SSN, or money amount error reported to the SSA on Form W-2. Be sure to get your copies of Form W-2c from your employer for all corrections made so you may file them with your tax return. If your name and SSN are correct but aren’t the same as shown on your social security card, you should ask for a new card that displays your correct name at any SSA office or by calling 800-772-1213. You may also visit the SSA website at www.SSA.gov.
Cost of employer-sponsored health coverage (if such cost is provided by the employer). The reporting in box 12, using code DD, of the cost of employer-sponsored health coverage is for your information only. The amount reported with code DD is not taxable.
Credit for excess taxes. If you had more than one employer in 2021 and more than $8,853.60 in social security and/or Tier 1 railroad retirement (RRTA) taxes were withheld, you may be able to claim a credit for the excess against your federal income tax. If you had more than one railroad employer and more than $5,203.80 in Tier 2 RRTA tax was withheld, you may also be able to claim a credit. See the Instructions for Forms 1040 and 1040-SR and Pub. 505, Tax Withholding and Estimated Tax.
(See also Instructions for Employee on the back of Copy C.)
aEmployee’s social security number
This information is being furnished to the Internal Revenue Service. If you
are required to file a tax return, a negligence penalty or other sanction
may be imposed on you if this income is taxable and you fail to report it.
Copy C—For EMPLOYEE’S RECORDS
(See Notice to Employee on the back of Copy B.)
Instructions for Employee
(See also Notice to Employee on the back of Copy B.)
Box 1. Enter this amount on the wages line of your tax return.
Box 2. Enter this amount on the federal income tax withheld line of your tax return.
Box 5. You may be required to report this amount on Form 8959, Additional Medicare Tax. See the Instructions for Forms 1040 and 1040-SR to determine if you are required to complete Form 8959.
Box 6. This amount includes the 1.45% Medicare Tax withheld on all Medicare wages and tips shown in box 5, as well as the 0.9% Additional Medicare Tax on any of those Medicare wages and tips above $200,000.
Box 8. This amount is not included in box 1, 3, 5, or 7. For information on how to report tips on your tax return, see the Instructions for Forms 1040 and 1040-SR.
You must file Form 4137, Social Security and Medicare Tax on Unreported Tip Income, with your income tax return to report at least the allocated tip amount unless you can prove with adequate records that you received a smaller amount. If you have records that show the actual amount of tips you received, report that amount even if it is more or less than the allocated tips. Use Form 4137 to figure the social security and Medicare tax owed on tips you didn’t report to your employer. Enter this amount on the wages line of your tax return. By filing Form 4137, your social security tips will be credited to your social security record (used to figure your benefits).
Box 10. This amount includes the total dependent care benefits that your employer paid to you or incurred on your behalf (including amounts from a section 125 (cafeteria) plan). Any amount over $5,000 is also included in box 1. Complete Form 2441, Child and Dependent Care Expenses, to figure any taxable and nontaxable amounts.
Box 11. This amount is (a) reported in box 1 if it is a distribution made to you from a nonqualified deferred compensation or nongovernmental section 457(b) plan, or (b) included in box 3 and/or box 5 if it is a prior year deferral under a nonqualified or section 457(b) plan that became taxable for social security and Medicare taxes this year because there is no longer a substantial risk of forfeiture of your right to the deferred amount. This box shouldn’t be used if you had a deferral and a
distribution in the same calendar year. If you made a deferral and received a distribution in the same calendar year, and you are or will be age 62 by the end of the calendar year, your employer should file Form SSA-131, Employer Report of Special Wage Payments, with the Social Security Administration and give you a copy.
Box 12. The following list explains the codes shown in box 12. You may need this information to complete your tax return. Elective deferrals (codes D, E, F, and S) and designated Roth contributions (codes AA, BB, and EE) under all plans are generally limited to a total of $19,500 ($13,500 if you only have SIMPLE plans; $22,500 for section 403(b) plans if you qualify for the 15-year rule explained in Pub. 571). Deferrals under code G are limited to $19,500. Deferrals under code H are limited to $7,000.
However, if you were at least age 50 in 2021, your employer may have allowed an additional deferral of up to $6,500 ($3,000 for section 401(k)(11) and 408(p) SIMPLE plans). This additional deferral amount is not subject to the overall limit on elective deferrals. For code G, the limit on elective deferrals may be higher for the last 3 years before you reach retirement age. Contact your plan administrator for more information. Amounts in excess of the overall elective deferral limit must be included in income. See the Instructions for Forms 1040 and 1040-SR.
Note: If a year follows code D through H, S, Y, AA, BB, or EE, you made a make-up pension contribution for a prior year(s) when you were in military service. To figure whether you made excess deferrals, consider these amounts for the year shown, not the current year. If no year is shown, the contributions are for the current year.
A—Uncollected social security or RRTA tax on tips. Include this tax on Form 1040 or 1040-SR. See the Instructions for Forms 1040 and 1040-SR.
B—Uncollected Medicare tax on tips. Include this tax on Form 1040 or 1040-SR. See the Instructions for Forms 1040 and 1040-SR.
C—Taxable cost of group-term life insurance over $50,000 (included in boxes 1, 3 (up to the social security wage base), and 5)
D—Elective deferrals to a section 401(k) cash or deferred arrangement. Also includes deferrals under a SIMPLE retirement account that is part of a section 401(k) arrangement.
E—Elective deferrals under a section 403(b) salary reduction agreement
(continued on back of Copy 2)
Copy 2—To Be Filed With Employee’s State, City, or Local
Income Tax Return
Instructions for Employee (continued from back of
Copy C)
Box 12 (continued)
F—Elective deferrals under a section 408(k)(6) salary reduction SEP
G—Elective deferrals and employer contributions (including nonelective deferrals) to a section 457(b) deferred compensation plan
H—Elective deferrals to a section 501(c)(18)(D) tax-exempt organization plan. See the Instructions for Forms 1040 and 1040-SR for how to deduct.
J—Nontaxable sick pay (information only, not included in box 1, 3, or 5)
K—20% excise tax on excess golden parachute payments. See the Instructions for Forms 1040 and 1040-SR.
L—Substantiated employee business expense reimbursements (nontaxable)
M—Uncollected social security or RRTA tax on taxable cost of group- term life insurance over $50,000 (former employees only). See the Instructions for Forms 1040 and 1040-SR.
N—Uncollected Medicare tax on taxable cost of group-term life insurance over $50,000 (former employees only). See the Instructions for Forms 1040 and 1040-SR.
P—Excludable moving expense reimbursements paid directly to a member of the U.S. Armed Forces (not included in box 1, 3, or 5)
Q—Nontaxable combat pay. See the Instructions for Forms 1040 and 1040-SR for details on reporting this amount.
R—Employer contributions to your Archer MSA. Report on Form 8853, Archer MSAs and Long-Term Care Insurance Contracts.
S—Employee salary reduction contributions under a section 408(p) SIMPLE plan (not included in box 1)
T—Adoption benefits (not included in box 1). Complete Form 8839, Qualified Adoption Expenses, to figure any taxable and nontaxable amounts.
V—Income from exercise of nonstatutory stock option(s) (included in boxes 1, 3 (up to the social security wage base), and 5). See Pub. 525, Taxable and Nontaxable Income, for reporting requirements.
W—Employer contributions (including amounts the employee elected to contribute using a section 125 (cafeteria) plan) to your health savings account. Report on Form 8889, Health Savings Accounts (HSAs).
Y—Deferrals under a section 409A nonqualified deferred compensation plan
Z—Income under a nonqualified deferred compensation plan that fails to satisfy section 409A. This amount is also included in box 1. It is subject to an additional 20% tax plus interest. See the Instructions for Forms 1040 and 1040-SR.
AA—Designated Roth contributions under a section 401(k) plan BB—Designated Roth contributions under a section 403(b) plan
DD—Cost of employer-sponsored health coverage. The amount reported with code DD is not taxable.
EE—Designated Roth contributions under a governmental section 457(b) plan. This amount does not apply to contributions under a tax- exempt organization section 457(b) plan.
FF—Permitted benefits under a qualified small employer health reimbursement arrangement
GG—Income from qualified equity grants under section 83(i)
HH—Aggregate deferrals under section 83(i) elections as of the close of the calendar year
Box 13. If the “Retirement plan” box is checked, special limits may apply to the amount of traditional IRA contributions you may deduct. See Pub. 590-A, Contributions to Individual Retirement Arrangements (IRAs).
Box 14. Employers may use this box to report information such as state disability insurance taxes withheld, union dues, uniform payments, health insurance premiums deducted, nontaxable income, educational assistance payments, or a member of the clergy’s parsonage allowance and utilities. Railroad employers use this box to report railroad retirement (RRTA) compensation, Tier 1 tax, Tier 2 tax, Medicare tax, and Additional Medicare Tax. Include tips reported by the employee to the employer in railroad retirement (RRTA) compensation.
Note: Keep Copy C of Form W-2 for at least 3 years after the due date for filing your income tax return. However, to help protect your social security benefits, keep Copy C until you begin receiving social security benefits, just in case there is a question about your work record and/or earnings in a particular year.
Copy D—For Employer
Act Notice, see separate instructions.
After gathering all required information, such as your employer's identification number (EIN) and your Social Security number, filling out the IRS W-2 form is the next step. This document is crucial for accurately reporting your annual wages and the taxes withheld from your paychecks. Doing so correctly ensures that your tax filings are precise, helping to avoid any potential issues with the IRS. Here are the steps needed to fill out the form:
After completing all relevant sections of the W-2 form, double-check your entries for accuracy. Mistakes can delay processing and affect your tax obligations. When satisfied, submit the form to the IRS and provide your employee with a copy for their records. This critical step concludes your responsibility for this part of the tax documentation process.
What is an IRS W-2 form?
The IRS W-2 form, often simply called a W-2, is a document that employers are required to send to their employees and the Internal Revenue Service (IRS) at the end of the tax year. It reports the employee's annual wages and the amount of taxes withheld from their paychecks. The information on the W-2 is essential for employees to prepare their tax returns.
When should I receive my W-2 form?
Employers are mandated by law to mail or electronically deliver your W-2 form by January 31st of the year following the tax year. This means for the 2022 tax year, your W-2 should be sent out by January 31, 2023. If the date falls on a weekend or holiday, the deadline is the next business day. If you haven't received your W-2 by mid-February, it's a good idea to contact your employer.
What should I do if there are errors on my W-2 form?
If you discover errors on your W-2 form, the first step is to contact your employer. Errors may include incorrect name, Social Security number, wages, or tax withholdings. Your employer can issue a corrected W-2, known as a W-2c. If your employer is unresponsive or refuses to correct the form, you can contact the IRS. The IRS will urge the employer to provide the corrected form and can assist you in ensuring your tax return is accurate.
Can I file my tax return if I haven't received my W-2?
If you haven't received your W-2 by the IRS deadline, you should still file your tax return on time. You can use Form 4852, the "Substitute for Form W-2, Wage and Tax Statement," to file. You will need to estimate your income and withholding taxes as accurately as possible. If you receive your W-2 after filing and the information differs, you may need to amend your tax return with Form 1040-X.
What is the difference between a W-2 form and a 1099 form?
A W-2 form is issued to employees, while independent contractors or freelancers receive a 1099 form, specifically the 1099-NEC form for nonemployee compensation. The key difference lies in the employment relationship and tax withholdings. Employers withhold income tax, Social Security, and Medicare taxes from employees' wages (reported on a W-2). In contrast, independent contractors are responsible for calculating and paying their own taxes, as their clients do not withhold taxes for them (reported on a 1099).
When filling out an IRS W-2 form, people often make mistakes that could lead to delays or complications. Here is a detailed list of common errors:
Incorrect Names or Social Security Numbers: Entries that do not match the information on Social Security Administration records can cause significant issues.
Wrong Addresses: If the address is outdated or incorrectly entered, important documents or communications from the IRS could be missed.
Inaccurate Income Information: Reporting incorrect wages, tips, or other compensation can result in improper tax calculations.
Failing to Report All Earnings: All sources of income, including non-cash and cash benefits, must be reported accurately.
Incorrect Tax Withheld Amounts: Errors in entering federal, state, or local tax withholdings can lead to owing more taxes or receiving a smaller refund.
Missing Employer Information: Employer details such as EIN, address, and state ID numbers are crucial for processing. Leaving these blank or incorrect can delay processing.
Not Filing On Time: Late submissions can result in penalties or missed deadlines, affecting both the employer and employee.
Avoiding these errors is key to ensuring that the process runs smoothly. It's always recommendable to double-check all entries and consult with a tax professional if there are any uncertainties.
When dealing with the IRS W-2 form, which reports an employee's annual wages and the amount of taxes withheld from their paycheck, individuals often find themselves needing additional documents to fully manage their tax situation. These forms play a crucial role in ensuring compliance with tax regulations and optimizing one's financial position. Understanding these documents helps in navigating the complexities of tax filing and planning efficiently.
Together with the IRS W-2 form, these documents form a comprehensive toolkit for managing taxes effectively. They address both income reporting and tax deduction aspects, catering to a wide range of circumstances. By familiarizing themselves with these forms, individuals and employers can make informed decisions about their tax planning strategies, avoid common pitfalls, and potentially enhance their financial well-being.
The 1099-MISC form is similar to the W-2 as it reports income. However, it's used for independent contractors and freelancers, not employees. Like the W-2, it details the amount of money a person has earned but differs in that it doesn't include withholdings for taxes or social security since those responsibilities fall on the individual, not an employer.
The W-4 form is akin to the W-2 because it deals with income tax. Its purpose is to help employers understand how much federal income tax to withhold from an employee's paycheck. Although the W-4 is filled out by employees to indicate their tax situations to their employers, it complements the W-2’s end-of-year summary of taxes withheld.
1040 forms share a purpose with the W-2 in the realm of taxes. They are the main form used by individuals to file their annual income tax returns with the IRS, summarizing an individual's financial income, including what has been reported on a W-2. The W-2 provides crucial pieces of information necessary to complete the 1040 form, such as income earned and taxes withheld.
The W-3 form accompanies the W-2 in the reporting process. It serves as a summary report for the Social Security Administration, compiling total earnings, Social Security wages, Medicare wages, and withholding for all employees of a company. Similar to the W-2, which reports this information for an individual employee, the W-3 does so for the entire company.
1099-NEC, used for reporting payments to non-employees, mirrors the W-2 in its function of income reporting. Introduced in tax year 2020, it specifically reports payments of $600 or more to individuals not on the payroll in the course of a business. While it shares the W-2's goal of income reporting, it is for a different category of workers.
Filling out the IRS W-2 form is a necessary task for employers at the end of the tax year. It involves detailing the wages paid to employees and the taxes withheld from them. To ensure accuracy and compliance with IRS regulations, here are 10 do's and don'ts to consider.
Do's:
Don'ts:
Misunderstandings about the IRS W-2 form are common. Here, we clarify some of the most frequent misconceptions.
Only full-time employees receive a W-2. This belief is incorrect. Both full-time and part-time employees should receive a W-2 form from their employer if they are considered an employee under IRS definitions. Independent contractors, on the other hand, typically receive a 1099 form instead.
W-2 forms are only necessary for tax filing if you owe taxes. This is not true. Regardless of whether you owe taxes or are due a refund, you need your W-2 form to accurately file your taxes. It contains crucial information about your income and taxes already paid.
Employers have until the end of February to issue W-2 forms. Actually, the deadline for employers to provide W-2 forms to their employees is January 31. This deadline ensures that employees have enough time to file their taxes, which are typically due on April 15.
You don't need to worry about your W-2 if you work and live in different states. This is a misunderstanding. If you work in one state and live in another, you may need to file state tax returns in both states. Your W-2 form helps determine your state tax liabilities.
Correcting a mistake on a W-2 form is the employee's responsibility. In fact, if there is a mistake on a W-2 form, it's the employer's responsibility to correct it and issue a corrected form, known as a W-2C. Employees should notify their employer of the mistake as soon as they notice it.
The IRS W-2 form is an essential document for many workers throughout the United States. It serves as a report of an employee's annual wages and the amount of taxes withheld from their paycheck. Here are five key takeaways about filling out and using the IRS W-2 form that can help both employers and employees navigate tax season with more ease.
501c3ez - Organizations must outline their revenue sources on Form 1023 for IRS review.
Supplemental Income and Loss - Taxpayers who co-own rental properties must report their share of income and expenses on their own Schedule E form.