Tax glossary

Form W-2

Form W-2 — what it means, how it works, and a real example, explained without the jargon.

What is Form W-2?

The W-2 is the wage statement your employer sends you and the IRS each January. It's the master record of what you were paid and what was withheld.

How it works

Every box maps to a line on your return: Box 1 is your taxable wages, Box 2 is federal tax withheld, and Boxes 3–6 cover Social Security and Medicare. You (or your software) copy these figures straight onto Form 1040. Because the IRS gets a copy too, the numbers have to match.

A quick example

If Box 1 shows $72,000 and Box 2 shows $8,400, you report $72,000 of wages and get credit for $8,400 already paid toward your tax.

What people get wrong

Employers must furnish W-2s by January 31. If yours is missing or wrong by mid-February, contact payroll first — filing with an estimated or incorrect W-2 is a common cause of IRS notices.

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Frequently asked questions

What does Form W-2 mean?

The W-2 is the wage statement your employer sends you and the IRS each January. It's the master record of what you were paid and what was withheld.

How does Form W-2 work?

Every box maps to a line on your return: Box 1 is your taxable wages, Box 2 is federal tax withheld, and Boxes 3–6 cover Social Security and Medicare. You (or your software) copy these figures straight onto Form 1040. Because the IRS gets a copy too, the numbers have to match.

What's the most common mistake with form w-2?

Employers must furnish W-2s by January 31. If yours is missing or wrong by mid-February, contact payroll first — filing with an estimated or incorrect W-2 is a common cause of IRS notices.