The IRS W-2 form is a document that employers use to report wages paid to employees and taxes withheld from them. It's a crucial piece of paper for both the Internal Revenue Service (IRS) and the employee, ensuring accurate tax return preparation and filing. Every year, employees wait for their W-2 form to arrive to complete their tax obligations.
Every year, as the tax season rolls around, millions of employees begin the process of filing their tax returns, a task that invariably involves the IRS W-2 form. This crucial document serves as a report detailing the salary an employee has earned from their employer and the taxes that have been deducted from those earnings throughout the tax year. It’s not only vital for the accurate filing of an individual's federal and state taxes but also for ensuring that the correct amount of Social Security and Medicare taxes have been paid. Employers are obligated to send out W-2 forms to their employees by January 31st, allowing ample time for taxpayers to meet the mid-April filing deadline. This form contains various boxes that report everything from wages, tips, and other compensation, to federal and state taxes withheld, contributing to its reputation as one of the most significant pieces of paper during tax season. Understanding the information on the W-2 can guide individuals in maximizing their tax refunds or minimizing the taxes they owe, highlighting its pivotal role in the financial lives of employees across the United States.
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.
The maximum amount of dependent care assistance benefits excludable from income may be increased for 2021. The American Rescue Plan Act of 2021 permits employers to increase the amount of dependent care benefits under their plans that can be excluded from an employee’s income from $5,000 ($2,500 for married filing separately) to up to $10,500 ($5,250 for married filing separately). See section C of Notice 2021-26 in
Internal Revenue Bulletin: 2021-21 | Internal Revenue Service (irs.gov) for more information.
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
2022
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 Form 1040 instructions 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 2022 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 2022 or if income is earned for services provided while you were an inmate at a penal institution. For 2022 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 the Social Security Administration (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 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 2022 and more than $9,114 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. See the Form 1040 instructions. If you had more than one railroad employer and more than $5,350.80 in Tier 2 RRTA tax was withheld, you may be able to claim a refund on Form 843. See the Instructions for Form 843.
(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 Form 1040 instructions 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 Form 1040 instructions.
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 your employer’s plan limit is also included in box 1. See Form 2441.
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 $20,500 ($14,000 if you only have SIMPLE plans; $23,500 for section 403(b) plans if you qualify for the 15-year rule explained in Pub. 571). Deferrals under code G are limited to $20,500. Deferrals under code H are limited to $7,000.
However, if you were at least age 50 in 2022, 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 Form 1040 instructions.
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 Form 1040 instructions.
B—Uncollected Medicare tax on tips. Include this tax on Form 1040 or 1040-SR. See the Form 1040 instructions.
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 Form 1040 instructions 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 Form 1040 instructions.
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 Form 1040 instructions.
N—Uncollected Medicare tax on taxable cost of group-term life insurance over $50,000 (former employees only). See the Form 1040 instructions.
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 Form 1040 instructions 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 Form 1040 instructions.
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.
Completing the IRS W-2 form is a crucial task for employers at the end of the tax year. This document reports employees' annual wages and the amount of taxes withheld from their paychecks. Accuracy is key when filling out this form to ensure employees can file their personal income taxes correctly and to avoid potential penalties from the IRS. Following the correct steps can simplify the process, making it easier to meet the IRS requirements.
Once the W-2 form is accurately completed, the next steps involve making sure that copies are distributed appropriately. Employees should receive their copies by January 31st to allow them to file their taxes. Employers also need to send a copy to the Social Security Administration to ensure accurate record-keeping and tax reporting. Keeping a copy for the employer’s records is also highly advisable for at least four years, as mandated by the IRS. This meticulous process helps in maintaining transparent financial records and complying with tax obligations efficiently.
What exactly is a W-2 form?
A W-2 form, known officially as the Wage and Tax Statement, is a document that an employer must send to each employee and the Internal Revenue Service (IRS) at the end of the year. It reports the employee's annual wages and the amount of taxes withheld from their paycheck. Essentially, it reflects your income and taxes paid throughout the year, serving as a crucial piece of documentation for filing your taxes.
Who receives a W-2 form?
W-2 forms are distributed to employees who receive a salary, wage, or other forms of compensation from their employer. This excludes independent contractors or freelancers who typically receive a 1099-NEC form instead. If you've been employed by a company and have had taxes withheld from your paycheck, you should expect to receive a W-2 from your employer.
When should I receive my W-2 form?
Employers are required by law to send your W-2 form by January 31st for the earnings of the previous calendar year. This deadline allows you ample time to prepare and file your taxes by the due date, which is usually April 15th. If you have not received your W-2 by mid-February, it's advisable to contact your employer to ensure it was sent to the correct address.
What if I don't receive my W-2 form?
If you haven't received your W-2 form by mid-February, take the following steps:
What information does the W-2 form include?
The W-2 form contains multiple boxes that report various information about your employment over the past year. Key information includes your total wages earned, federal and state taxes withheld, Social Security and Medicare contributions, and any additional compensation, such as tips. It also includes your employer's identification number (EIN), your Social Security number, and both your and your employer's addresses, which are vital for your tax return.
How do I use the W-2 form to file my taxes?
When filing your taxes, you'll use the information on the W-2 form to fill out your tax return forms, such as the IRS Form 1040. The numbers you'll need include your total wages, tax withheld, and contributions to retirement plans, which will help determine if you're due for a refund or if you owe additional tax. It's important to input the amounts precisely as they appear on your W-2 to avoid any errors in your tax calculation.
What should I do if I find a mistake on my W-2 form?
If you identify an error on your W-2, such as incorrect wages or tax withholdings, you should immediately contact your employer to issue a corrected W-2, also known as W-2c. You'll need the corrected form to ensure that your tax filings are accurate. If the error impacts your Social Security records, it's vital to ensure the corrected information gets reported to the Social Security Administration as well.
When it comes to tax season, accurately filling out the IRS W-2 form is crucial for employers. However, common errors can occur, making the process more complicated than needed. One of the most frequent mistakes is entering incorrect employee information. It’s essential to double-check the employee's Social Security Number (SSN) and name as they appear on their Social Security card to ensure everything matches up.
Another area where errors are often made is in reporting wages and taxes. Sometimes, the reported wages do not match the payroll records. This discrepancy might be due to overlooking bonuses, commissions, or other forms of compensation paid to the employee throughout the year. Ensuring that all forms of compensation are accurately captured is essential.
Furthermore, the incorrect classification of employees can lead to significant issues. Misclassifying workers as independent contractors instead of employees, or vice versa, affects how taxes are reported and can lead to penalties. It's vital to understand the difference and correctly classify each worker to comply with IRS guidelines.
Incorrect state information or improperly filled out state tax fields can create headaches for both the employer and the employee. Each state may have different requirements for reporting, and overlooking these nuances can lead to inaccuracies on the form. Always verify the state tax requirements to ensure correct reporting.
Another common oversight is failing to report all the necessary information in the correct boxes. Each box on the W-2 form serves a specific purpose, from reporting Medicare wages to Social Security tips. It’s easy to misplace figures or leave a box blank by mistake. Paying close attention to the details of what each box requires can prevent this issue.
Failure to check the form for accuracy before submission is a simple yet critical mistake. Once completed, reviewing the W-2 form for any errors or inconsistencies can save time and prevent the need for corrections later on. This step is often overlooked in the rush to meet filing deadlines but is essential for accuracy.
The mishandling of employee copies of the W-2 form is also a common mistake. Employers are required to distribute copies of the W-2 form to their employees by a certain deadline. Delaying this process or failing to deliver these documents can inconvenience employees and lead to penalties.
Last but not least, ignoring the filing deadlines set by the IRS can result in unnecessary penalties and added stress. Keeping track of when the forms need to be filed and ensuring all documents are submitted on time is crucial for staying compliant and avoiding late fees.
Correctly filling out the IRS W-2 form requires attention to detail and an understanding of the requirements. By avoiding these common mistakes, employers can ensure a smoother process for themselves and their employees, leading to a more seamless tax season.
When it comes to preparing for tax season, the IRS W-2 form is a critical document for employees, as it reports an employee's annual wages and the amount of taxes withheld from their paycheck. However, several other forms and documents are frequently used alongside the W-2 to ensure an accurate and comprehensive tax return. Let's delve into a selection of these important documents.
Understanding and properly preparing these forms in conjunction with the W-2 can significantly influence the accuracy of an individual's tax return. Each form has a specific purpose and is a critical piece of the puzzle during tax season. Ensuring that all relevant documents are accurately completed and filed is paramount to achieving a correct and timely processing of one's taxes.
This document is provided to independent contractors and freelancers to report income that does not come from traditional employment, similar to how the W-2 reports income for employees. Both forms distinguish income sources for tax purposes but apply to different types of workers.
Used for individual income tax returns, Form 1040 serves as the final report where information from the W-2, including wages, tips, and other compensations, is aggregated and disclosed. While the W-2 informs employees of their annual earnings and tax withholdings, Form 1040 presents an overview of the taxpayer’s annual income, deductions, and credits.
The W-4 is filled out by employees to indicate their tax withholding preferences. It directly influences the information on the W-2, determining how much federal income tax is withheld from their paycheck. In essence, the W-4 sets up the details that will be reported on the W-2.
Employers use this quarterly tax form to report income taxes, social security tax, and Medicare tax withheld from employees' paychecks. It aligns with the W-2 in tracking employee earnings and withholdings, but on a quarterly basis, serving as a check-in point throughout the fiscal year.
Similar to the W-2, which provides information about income and withholdings, the 1098 series reports various forms of interest and expenses, such as mortgage interest (Form 1098), tuition payments (Form 1098-T), and student loan interest (Form 1098-E). These documents similarly aim to report specific financial information that impacts tax liabilities.
Requested by entities that pay freelancers, contractors, or other non-employees, it's used to gather taxpayer identification numbers (TINs) to prepare Form 1099. Though the W-9 itself is not submitted to the IRS, it plays a crucial role in the tax reporting process, akin to how the W-2 forms report employee income for tax purposes.
These forms report individual health insurance coverage, employer-offered health coverage, or offers of insurance from an insurer. Similar to the W-2's reporting of employment income and tax withholdings, Forms 1095-B and 1095-C report vital health coverage information, affecting tax liability related to healthcare provisions.
This form serves as a substitute for Form W-2 or Form 1099-R when the employer or payer does not provide these documents, or they are incorrect. Form 4852 requires taxpayers to estimate their wage and tax information, mirroring the type of data the W-2 provides, albeit through a different, more self-reliant process.
Although different in every state, these forms resemble the W-2 in function for state tax filings. They typically require information from the W-2 to report income, tax withholdings, and other pertinent tax-related data at the state level, highlighting its foundational role in both federal and state tax reporting.
When filling out the IRS W-2 form, it is crucial to approach the task with attention to detail and accuracy. Below are key dos and don'ts to keep in mind.
Do:
Don't:
Understanding the IRS W-2 form is crucial for both employers and employees, as it plays a key role in the tax filing process in the United States. However, there are several misconceptions about the W-2 form that need to be clarified to ensure compliance and to make tax season smoother for all parties involved.
Clarifying these misconceptions can help both employers and employees navigate tax season more effectively, ensuring that everyone fulfills their tax obligations accurately and on time.
The IRS W-2 form is an essential document for both employers and employees in the United States. It's critical to understand its purpose, how to fill it out correctly, and its implications for your taxes. Here are key takeaways to guide you through this process:
Employer Obligation: It's the responsibility of the employer to fill out the W-2 form for each employee. This form reports the total annual wages paid and taxes withheld from the employee's paycheck.
Deadline for Distribution: Employers must send the W-2 form to employees by January 31st following the end of the tax year. This ensures employees have sufficient time to file their taxes.
Accurate Information is Crucial: Both employers and employees should double-check all the information on the W-2. Mistakes, no matter how small, can lead to processing delays or incorrect tax liabilities.
Multiplicity for Multiple Jobs: If an individual worked for more than one employer during the year, they should receive a W-2 form from each employer. Each form must be included when filing taxes.
Electronic Access: Many employers offer employees the option to access their W-2 forms electronically. This method is faster and can be more secure than waiting for a traditional paper form in the mail.
Importance for Tax Filing: The W-2 form is essential for accurately preparing your tax return. It provides necessary information about your earnings and the taxes withheld from them.
Correction Process: If there are errors on your W-2, your employer can issue a corrected form, known as a W-2c. It’s important to wait for the corrected form before filing your taxes if you discover a mistake.
Retention for Records: Once received, keep your W-2 forms with other important tax documents. You may need them for future reference, such as applying for a loan or verifying past income.
Understanding these key points about the IRS W-2 form can make tax season a smoother experience. It helps ensure that employees are ready to file accurately and on time, while also fulfilling employers' obligations under tax law.
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