Form W-2
An IRS form issued by employers to employees reporting annual wages and taxes withheld.
What is W-2 Form?
Form W-2 (Wage and Tax Statement) is issued by employers to each employee by January 31 following the tax year. It reports total wages paid, federal and state income taxes withheld, Social Security and Medicare taxes withheld, and other compensation such as employer contributions to a 401(k) or the value of benefits. Employees use the W-2 to file their federal and state income tax returns. Employers also submit copies to the Social Security Administration and state tax agencies. Multiple employers issue separate W-2s, all of which must be reported on the employee's return.
Example
An employee earns $85,000 in salary in 2024. Their W-2 shows Box 1 (wages) of $80,000 after $5,000 in pre-tax 401(k) contributions, Box 2 (federal income tax withheld) of $10,200, Box 4 (Social Security tax withheld) of $5,270, and Box 6 (Medicare tax withheld) of $1,233. These figures transfer directly to Form 1040.
Source: IRS — About Form W-2