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Homepage ⇉ Free IRS W-2 PDF Template
Outline

Every year, employees across the United States anxiously await the arrival of a crucial document that plays a pivotal role in their financial affairs - the W-2 form. As the primary reporting document for wage and salary information for employees, its arrival kickstarts the annual ritual of tax preparation and filing. The Internal Revenue Service (IRS) mandates that employers must furnish this form, which details not just wages paid but also taxes withheld from an employee's paycheck over the calendar year. This includes federal, state, and other taxes, making the W-2 an essential piece of the puzzle in accurately fulfilling one’s tax obligations. Furthermore, the form accounts for other contributions such as those toward retirement plans and health insurance. Given its significance in the financial lives of millions, understanding the nuances and ensuring its accurate completion is paramount for both employers and employees. It doesn't only serve as a record of earnings but also affects tax refund calculations and potential liabilities, thereby holding a significant influence on one's financial health.

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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

 

C

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

o

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

d

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

e

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

14 Other

 

 

 

 

 

12c

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

C

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

o

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

d

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

e

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12d

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

C

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

o

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

d

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

e

 

 

 

 

 

 

 

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

22222

a Employee’s social security number

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

C

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

o

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

d

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

e

 

 

 

 

 

 

 

 

 

13

Statutory

Retirement

Third-party

 

12b

 

 

 

 

 

 

 

 

 

 

employee

plan

sick pay

 

C

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

o

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

d

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

e

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

14 Other

 

 

 

 

 

12c

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

C

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

o

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

d

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

e

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12d

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

C

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

o

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

d

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

e

 

 

 

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

 

 

 

 

 

 

 

 

 

 

Copy 1—For State, City, or Local Tax Department

 

 

a

Employee’s social security number

 

 

 

Safe, accurate,

 

 

 

 

 

Visit the IRS website at

 

 

 

 

 

 

OMB No. 1545-0008

FAST! Use

 

 

 

 

 

www.irs.gov/efile

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

C

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

o

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

d

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

e

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

14 Other

 

 

 

 

 

12c

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

C

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

o

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

d

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

e

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12d

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

C

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

o

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

d

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

e

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

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

OMB No. 1545-0008

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.

 

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

 

C

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

o

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

d

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

e

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

14 Other

 

 

 

 

 

12c

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

C

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

o

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

d

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

e

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12d

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

C

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

o

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

d

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

e

 

 

 

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

 

 

 

 

Safe, accurate,

 

Copy C—For EMPLOYEE’S RECORDS

 

 

 

 

 

 

 

FAST! Use

 

(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)

 

 

a Employee’s social security number

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

C

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

o

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

d

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

e

 

 

 

 

 

 

 

 

 

13

Statutory

Retirement

Third-party

 

12b

 

 

 

 

 

 

 

 

 

 

employee

plan

sick pay

 

C

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

o

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

d

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

e

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

14 Other

 

 

 

 

 

12c

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

C

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

o

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

d

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

e

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12d

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

C

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

o

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

d

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

e

 

 

 

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

 

 

 

 

 

 

 

 

 

 

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.

 

VOID

 

 

a Employee’s social security number

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

 

C

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

o

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

d

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

e

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

14 Other

 

 

 

 

 

12c

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

C

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

o

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

d

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

e

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12d

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

C

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

o

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

d

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

e

 

 

 

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 D—For Employer

 

 

 

 

 

 

 

 

 

 

Act Notice, see separate instructions.
Get PDF Form

Document Attributes

Fact Name Description
Purpose of the W-2 Form This form is utilized by employers to report an employee's annual earnings and the amount of taxes withheld from their paycheck to the Internal Revenue Service (IRS).
Deadline for Distribution Employers must send out the W-2 form to their employees by January 31st following the end of the tax year, to ensure employees have sufficient time to file their income taxes.
Electronic Accessibility While physical copies are traditionally mailed, employees also have the option to receive their W-2 form electronically, provided they consent to this method.
State-Specific Forms and Laws Some states may require additional state-specific tax forms in addition to the federal W-2 form. Laws regarding these forms vary by state, reflecting the state's tax regulations and requirements.

How to Fill Out IRS W-2

Filling out an IRS W-2 form is an essential task for employers as it involves reporting the income, tax withholdings, and other financial information of their employees for the tax year. It is important to complete this form accurately to ensure that employees have the information they need to file their tax returns. The process may seem complex initially but can be made straightforward by following a step-by-step approach. Below are the steps to accurately fill out the W-2 form:

  1. Start by gathering all required employee information, including Social Security numbers and addresses.
  2. Enter the employer's identification number (EIN) in box a.
  3. Fill in the employer's name, address, and ZIP code in box c.
  4. In box e, write the employee's full name. Follow the format: last name, first name, and initial.
  5. Enter the employee's address and ZIP code in box f.
  6. Provide the employee's Social Security Number (SSN) in box d.
  7. In box 1, report the employee’s total wages, tips, and other compensation.
  8. Box 2 should indicate the total federal income tax withheld from the employee’s earnings.
  9. Enter the employee’s Social Security wages in box 3, up to the applicable wage base limit for the tax year.
  10. Report the Social Security tax withheld from the employee’s earnings in box 4.
  11. Input the employee’s Medicare wages and tips in box 5.
  12. Box 6 should show the Medicare tax withheld.
  13. For boxes 7 and 8, report any social security tips and allocated tips, if applicable.
  14. Use box 9 to confirm if an employee participated in employer-sponsored retirement plans.
  15. Fill in the state tax information in boxes 15 through 20, if applicable, including the state name, employer's state ID number, state wages and tips, and the amount of state income and unemployment tax withheld.
  16. Review the entire form for accuracy, and ensure all numbers are correct and all necessary fields are completed.

Once the W-2 form is filled out completely and accurately, the next steps involve distributing the forms and filing them with the Social Security Administration (SSA). Employers must provide copies to their employees by January 31st of the year following the tax year reported, ensuring employees have ample time to file their tax returns. Additionally, employers are required to submit Copy A of all W-2 forms, along with a W-3 form which summarizes the W-2 information, to the SSA by the last day of February (if filing by paper) or the end of March (if filing electronically). Adhering to these guidelines will assist in maintaining compliance with IRS regulations and ensuring the timely processing of tax-related information.

More About IRS W-2

  1. What is a W-2 form?

    The W-2 form, also known as the Wage and Tax Statement, is a document that employers must send to their employees and the Internal Revenue Service (IRS) at the end of each year. It reports the employee's annual wages and the amount of taxes withheld from their paycheck. This form is essential for employees to prepare their annual tax returns, as it provides critical information regarding their income and taxes paid throughout the year.

  2. When should I receive my W-2 form?

    Employers are required to provide you with your W-2 form by January 31st of the year following the reported earnings. If this date falls on a weekend or holiday, the deadline is extended to the next business day. This allows employees ample time to file their taxes accurately and promptly.

  3. What should I do if I haven’t received my W-2?

    If you do not receive your W-2 form by the middle of February, it's advisable to take the following steps:

    • Contact your employer to ensure they have your correct mailing address on file and request a reissued W-2.
    • If you still have not received it by the end of February, you can contact the IRS for assistance. The IRS may contact your employer on your behalf to request the missing form.

  4. Can I file my taxes without a W-2?

    While it's crucial to have your W-2 form to file your taxes accurately, the IRS does allow you to file without it if you haven't received the form by the tax filing deadline. In such cases, you can use Form 4852, Substitute for Form W-2, Wage and Tax Statement. You will need to estimate your income and withholding taxes as accurately as possible. It's important to note that filing with an estimated W-2 may delay the processing of your tax return.

  5. What if the information on my W-2 is incorrect?

    If you discover any discrepancies on your W-2 form, you should promptly contact your employer to issue a corrected W-2, known as a W-2c. Common errors might include incorrect wage, tax withholding amounts, or personal information. It is essential to wait for the corrected W-2 before filing your taxes to ensure that your tax return is accurate.

  6. Can I access my W-2 online?

    Many employers offer the option to access your W-2 electronically. Opting in usually requires you to give your consent to receive the form electronically instead of by mail. Accessing your W-2 online can be faster and more secure, and this method also helps in reducing paper waste.

  7. What if I worked for multiple employers?

    If you worked for multiple employers during the year, you should receive a W-2 form from each employer. It's your responsibility to ensure you have received all your W-2 forms before filing your taxes. If you’re missing a W-2 from any employer, follow the steps outlined above to obtain the missing form. Combining information from all your W-2 forms is crucial for accurately filing your tax return and calculating your total income and tax liability.

Common mistakes

When completing the IRS W-2 form, individuals often make errors that can lead to delays in processing or even penalties. It's crucial to approach this task carefully to ensure accuracy. Below are seven common mistakes encountered:

  1. Incorrectly reporting names or Social Security numbers. It's imperative that the names and Social Security numbers on the W-2 form exactly match the information on the individual's Social Security card to avoid processing issues.

  2. Failure to report all income. All forms of income, including tips and any other earnings, must be reported accurately. Omitting income can lead to discrepancies and potential audits.

  3. Incorrectly filling out tax withheld amounts. The federal, state, and other taxes withheld must be reported precisely as these figures are critical for calculating the individual’s tax liability or refund.

  4. Misclassifying employee benefits. Certain non-cash benefits, such as health insurance or retirement plan contributions, must be reported accurately. Misclassification can result in incorrect tax calculations.

  5. Failing to provide complete state information. This includes correctly filling out the employer’s state ID number and the state wages and taxes. Inaccuracies or omissions can cause delays in state tax processing.

  6. Mixing up boxes. Each box on the W-2 form has a specific purpose and must contain the correct information. Placing information in the wrong box can lead to misinterpretation of data.

  7. Forgetting to sign and date the form (if submitting a paper copy). A common oversight is the failure to sign and date the form, which is necessary for validation.

Avoiding these mistakes requires meticulous attention to detail and a thorough understanding of the form's requirements. Double-checking all entries before submission can significantly reduce the risk of errors.

Documents used along the form

When dealing with tax documents, particularly around the filing season, it's essential to have a comprehensive understanding of the materials that often accompany the IRS W-2 form. The W-2 form is a fundamental document that reports an employee's annual wages and the amount of taxes withheld from their paycheck. However, to ensure a smooth and compliant tax filing process, several other forms and documents are frequently required to provide a complete picture of an individual's financial situation for the tax year.

  1. IRS Form 1040: This is the standard Internal Revenue Service (IRS) form that individuals use to file their annual income tax returns. It captures the taxpayer’s financial income, tax deductions, and credits to calculate their tax liability or refund.
  2. IRS Form 1099-MISC: Used to report various types of income other than wages, salaries, and tips. This includes fees, commissions, prizes, awards, and other forms of compensation for services performed by someone who is not an employee.
  3. IRS Form 1099-INT: Essential for reporting interest income from banks and other financial institutions. Taxpayers need this form to report interest earned on savings accounts, interest-bearing checking accounts, and US Savings bonds.
  4. IRS Form 1099-DIV: This document is for reporting dividend income and capital gain distributions. It is used by banks and financial institutions to report dividends and distributions that were paid on stocks and mutual funds.
  5. IRS Form 1098: The Mortgage Interest Statement is used to report interest that a taxpayer has paid on their mortgage. This form is a critical document for homeowners as mortgage interest can be tax-deductible.
  6. IRS Form 8863: For taxpayers who are eligible for education credits, this form is used to calculate the amounts of the American Opportunity Credit and the Lifetime Learning Credit for qualified education expenses.
  7. Schedule A (Form 1040): This is used to itemize allowable deductions against income, such as medical and dental expenses, taxes paid, charitable contributions, and interest paid on home mortgages, which could potentially lower the taxpayer's taxable income.

Understanding the purpose and requirement of each of these documents can significantly simplify the tax filing process. It's not just about compiling numbers but gathering a precise, complete set of records that accurately reflect an individual's financial activities over the tax year. Proper documentation is crucial for compliance and ensuring that individuals take full advantage of any tax benefits or deductions to which they are entitled. Navigating through this process with a clear understanding of each document's role can alleviate some of the complexities associated with tax season.

Similar forms

  • IRS Form 1099-MISC: This form is used to report income for individuals working as independent contractors or freelancers, rather than traditional employees. Similar to the W-2, it reports income to both the taxpayer and the IRS, ensuring that income taxes can be accurately calculated.
  • IRS Form 1040: The individual income tax return form where taxpayers compile their taxable income from various sources, including wages reported on the W-2 form. It provides a summary of income, deductions, and tax credits to calculate the total tax owed or refund due, acting as the final step in reporting an individual's annual income.
  • IRS Form W-4: Used by employees to indicate their tax withholding preferences. While it doesn't report income, it directly affects the information on the W-2 by determining the amount of federal income tax withheld from paychecks, showcasing a preparatory step to the income reporting process.
  • IRS Form 1099-INT: This form is issued by banks and financial institutions to report interest income. Like the W-2 form, it provides necessary information for individuals to complete their tax returns, ensuring all income types are accounted for in tax calculations.
  • IRS Form 1098: Issued by lenders to report mortgage interest payments. While focused on a specific type of deduction, it's similar to the W-2 in that it provides vital information needed for properly filing an individual's tax return, directly affecting taxable income calculations.
  • IRS Form 1095-A, B, or C: These forms report health insurance coverage, essential for calculating the Premium Tax Credit or determining the payment for not having health insurance. They are related to the W-2 form by being an integral part of the tax return process, affecting tax obligations and refunds.
  • State Income Tax Return Forms: Most states have their own version of the federal tax return, requiring similar income documentation to the W-2 form for state tax purposes. These forms help state tax authorities calculate individual tax liability based on income earned within the state.
  • Pay Stubs: While not submitted to the IRS, pay stubs provide immediate documentation of income, taxes withheld, and other deductions, serving as a precursor to the W-2 form. They offer individuals a way to verify the income and tax information reported on their W-2 form is accurate.

Dos and Don'ts

Filling out the IRS W-2 form correctly is crucial for both employers and employees. It not only helps in maintaining accurate pay records but also ensures compliance with tax regulations. To guide you through the process, here’s a list of dos and don'ts:

Do:

  1. Verify the employee’s social security number (SSN) and legal name, ensuring they match the information on their social security card.
  2. Ensure accuracy in reporting all wages, tips, and other compensation paid to the employee throughout the tax year.
  3. Include all withheld taxes accurately, such as federal income tax, social security tax, and Medicare tax based on current tax rates.
  4. Report any additional income payments, such as dependent care benefits and nonqualified plans, in the corresponding boxes.
  5. Provide the employee’s address and your employer identification number (EIN) correctly to avoid processing delays.
  6. Use the IRS’s official W-2 form rather than creating your own version to ensure compliance with formatting requirements.
  7. Make sure to distribute copies of the W-2 form to your employees and the Social Security Administration by the IRS’s deadline.
  8. Keep a record of the W-2 forms you’ve issued for at least four years for future reference or in case of audits.
  9. Double-check that the state and local income tax information (if applicable) is reported accurately.
  10. Utilize electronic filing if you’re issuing W-2 forms for a large number of employees to streamline the process.

Don’t:

  1. Don’t leave any fields blank; use "0" or "non applicable" where a specific reporting is not required.
  2. Don’t forget to include the decimal points and cents when reporting amounts to ensure precise income reporting.
  3. Don’t underestimate the value of thoroughly reviewing the form for typos or errors before final submission.
  4. Don’t use correction fluid or similar products on the form; if an error is made, start with a new form.
  5. Don’t delay in addressing errors; if you notice mistakes after submission, correct them as soon as possible.
  6. Don’t ignore IRS updates or changes to the W-2 form; always use the most current version of the form.
  7. Don’t send incomplete copies to employees or the Social Security Administration; ensure all necessary copies are fully completed and legible.
  8. Don’t overlook the importance of obtaining employee consent for electronic delivery of their W-2 form.
  9. Don’t forget to report any employee consent to electronic W-2s in writing and ensure it complies with IRS guidelines.
  10. Don’t hesitate to seek clarification from a tax professional if uncertain about how to fill out the W-2 form correctly.

Misconceptions

When it comes to understanding the IRS W-2 form, many misconceptions can lead to confusion and frustration. It is important to clear these misunderstandings to ensure compliance with tax regulations and to prevent any unnecessary errors. Here are seven common misconceptions about the IRS W-2 form:

  • Only full-time employees receive a W-2 form. This is incorrect. Whether an individual is a full-time or part-time employee, if an employer has paid them wages, they should provide the employee with a W-2 form. The key factor is not the number of hours worked but whether the individual is classified as an employee.

  • Contractors should expect to receive a W-2 form. This is a common misconception. Independent contractors do not receive a W-2 form; instead, they should receive a Form 1099-NEC from the entities that paid them. This form reflects the income they earned as non-employees.

  • Employees can opt to receive their W-2 forms electronically only. While many employers offer electronic W-2 forms for convenience and environmental reasons, employees must consent to receive their W-2 form in an electronic format only. Otherwise, employers are required to provide a paper copy.

  • All the information on my W-2 form is accurate. While employers strive to ensure accuracy in reporting, mistakes can happen. It's important for employees to review their W-2 forms carefully for any discrepancies in personal information or reported earnings and taxes. If errors are found, they should contact their employer to correct the form.

  • I don’t need to file a tax return if I didn’t earn enough to receive a W-2 form. This is a misconception that can lead to tax issues. Even if an individual didn't earn enough to require an employer to issue a W-2 form, they may still be required to file a tax return based on other criteria, such as self-employment earnings or other sources of income.

  • W-2 forms are private and cannot be shared with anyone besides the IRS. While W-2 forms contain sensitive personal information, they are often required to be shared with state tax agencies, and individuals may need to provide copies when applying for loans or financial assistance. It is crucial, however, to ensure this information is shared securely to protect against identity theft.

  • The deadline for employers to issue W-2 forms is flexible. The IRS sets a strict deadline for employers to provide W-2 forms to their employees, typically January 31st of the year following the reported earnings. This deadline is important for allowing employees adequate time to file their tax returns.

Key takeaways

The IRS W-2 form, a critical document for both employers and employees in the United States, serves as a report detailing the wages paid and taxes withheld for an employee over the tax year. Understanding its nuances can significantly ease the tax filing process, ensuring compliance with federal regulations and potentially averting common pitfalls. Here are five key takeaways regarding the completion and utilization of the IRS W-2 form:

  • Accuracy is paramount when filling out the W-2. Each box on the form requires precise information ranging from personal identifiers like Social Security Numbers to financial data including wages and taxes withheld. Errors can lead to processing delays, potential fines, and the need for corrections, which complicate the taxpayer's situation.
  • Deadlines matter significantly. Employers must send out W-2 forms to their employees by January 31st following the end of the tax year. This allows individuals ample time to prepare their tax returns ahead of the April 15th deadline. Failing to meet this deadline can result in penalties and put employees in a tight spot, scrambling to file taxes on time.
  • Electronic filing of W-2 forms is encouraged. While paper filing is still an option, electronic submission is often faster and reduces the risk of errors. The Social Security Administration (SSA) provides resources for electronic filing, which benefits both the employer, by streamlining the process, and the employee, by ensuring quicker access to their W-2 information.
  • Understanding the difference between W-2 and other tax forms is crucial. The W-2 is often confused with forms such as the 1099-MISC, which is used for independent contractors rather than traditional employees. Recognizing the correct form applicable to each worker's situation helps in maintaining the integrity of the filing process and observing the current tax laws and guidelines.
  • Amendments might be necessary if errors are discovered after submission. If an employer or employee finds mistakes post-distribution, a corrected W-2 form, known as a W-2c, must be filed. This responsibility underscores the importance of double-checking the W-2 forms before they are initially submitted to avoid the need for corrections later on.

Adhering to these guidelines will ease the annual tax reporting burden, facilitate compliance with federal tax obligations, and ensure the accuracy and timeliness of information submitted to the IRS and Social Security Administration.

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