The IRS W-2 form is an essential document that employers use to report an employee's annual wages and the taxes withheld from their paycheck. This form plays a crucial role in preparing your taxes, ensuring that you are credited with the taxes that have already been paid on your behalf. For detailed guidance on filling out this form, click the button below.
At the heart of the federal tax reporting system in the United States lies the IRS W-2 form, a document that bridges the information gap between employers and the Internal Revenue Service (IRS) regarding an individual's income, taxes withheld, and other pertinent financial data accumulated over the course of a year. This form not only plays a pivotal role in ensuring tax compliance by annually documenting an employee's earnings and the taxes deducted from those earnings but also serves as a fundamental reference for employees as they navigate their personal tax return preparations. With sections dedicated to various types of income, including wages, tips, and other compensations, alongside detailed accounts of federal, state, and other taxes withheld, the W-2 form encompasses a comprehensive snapshot of an individual's taxable income. Its importance is further magnified by its utility in supporting eligibility determinations for certain tax credits and benefits that hinge on an accurate representation of an individual's financial situation. Thus, the W-2 form stands as a crucial piece of the financial puzzle, ensuring transparency and accuracy in the taxation process, and facilitating a smoother interaction between taxpayers, employers, and the IRS. Understanding its components, deadlines, and the implications of its information is essential for both employers responsible for its accurate and timely filing and for employees, whose financial and tax obligations are directly affected by the data it contains.
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.
Completing the IRS W-2 form is a critical process for employers at the beginning of each year, as this document reports an employee's annual wages and the amount of taxes withheld from their paycheck. It's vital both for the employer's record-keeping and for the employee to be able to file their taxes accurately. The steps below are designed to simplify the process, ensuring that all the necessary information is captured accurately and in compliance with tax regulations.
Following these steps meticulously not only facilitates smooth tax reporting but also ensures compliance with federal and state requirements, thereby avoiding potential penalties. Remember, each piece of information on the W-2 form plays a significant role in the broader tax filing process, reaffirming the importance of accuracy and attentiveness throughout its completion.
A W-2 form, also known as the Wage and Tax Statement, is a document that an employer is required to send to each of their employees and the Internal Revenue Service (IRS) at the end of the year. This form reports the employee’s annual wages and the amount of taxes withheld from their paycheck. It is a crucial document for filing federal and state taxes.
Employees who are paid a salary or hourly wage by their employer will receive a W-2 form. This includes both full-time and part-time workers. Independent contractors and freelancers, who are not considered employees, receive a different document called a 1099 form instead of a W-2.
Employers are required to provide you with your W-2 form by January 31st following the end of the tax year. If this date falls on a weekend or holiday, the deadline is extended to the next business day. If you have not received your W-2 by the middle of February, it is advisable to contact your employer.
If you haven’t received your W-2 form by February 15th, take the following steps:
The W-2 form contains a variety of information, including:
If you discover an error on your W-2 form, you should first contact your employer. They will need to issue a corrected W-2, known as a W-2c, after verifying the mistake. It's essential to wait for the corrected W-2 before filing your tax return to avoid needing to amend your return later.
While it is not recommended, you may file your taxes without a W-2 if you haven’t received it by the tax filing deadline. Use Form 4852 to estimate your wage and withholding information as accurately as possible. Remember, filing without or with incorrect information may lead to delays in processing your return and could result in penalties.
Yes, many employers provide electronic W-2 forms through secure online portals. This option is faster and can be more convenient than waiting for a paper copy through the mail. You will usually need to give your consent to receive your W-2 electronically.
If you worked for more than one employer during the tax year, you should receive a W-2 form from each employer. It’s important to include information from all your W-2s when you file your tax return to accurately report your income and withholding to the IRS.
The W-2 form provides the IRS with details about your annual wages and the tax you have already paid through withholding. This information helps to determine whether you will receive a tax refund or owe additional taxes. Failing to report any part of your income could lead to penalties or audits, highlighting the importance of this form in the tax filing process.
Filling out the IRS W-2 form is a crucial step for employers at the end of the tax year, as it reports an employee's annual wages and the amount of taxes withheld from their paycheck. However, mistakes can happen. The consequences of such errors may lead to a series of issues, both for the employee and the employer, including delayed tax returns, incorrect tax calculations, and potential penalties from the IRS. Here are four common mistakes people make when completing the W-2 form.
Incorrect Social Security Numbers: One of the most common errors is entering an employee's Social Security Number (SSN) incorrectly. This can lead to significant problems, such as misreported earnings and issues with an employee's Social Security benefits. Always double-check the SSN against employee records to ensure accuracy.
Misclassifying Employees: Another mistake involves misclassifying workers as independent contractors instead of as employees. This error affects the type of forms to be filled out and can lead to incorrect withholding of taxes, resulting in penalties and interest. It's essential to understand the difference between an employee and an independent contractor to avoid this mistake.
Incorrect or Missing Wage Information: Sometimes, wages may be reported inaccurately or not reported at all. This can happen if there are discrepancies in an employee's records or if bonuses and other compensation forms are overlooked. Ensure that all compensation, including non-cash and fringe benefits, is accurately reported.
Filing Forms Late: Submitting W-2 forms after the IRS deadline can lead to penalties for employers. The deadline for filing is January 31st for the previous tax year. To avoid late fees, start the process early and consider using electronic filing methods for quicker submission.
By paying attention to these common pitfalls and ensuring all information on the W-2 form is accurate and submitted on time, employers can avoid unnecessary headaches and maintain compliance with IRS requirements. Remember, when in doubt, consulting with a tax professional can provide clarity and assurance that you're following all procedures correctly.
When tax season rolls around, the IRS W-2 form becomes a household name for many. It's the document that reports an employee's annual wages and the amount of taxes withheld from their paycheck. But it's just one piece of the puzzle in an individual's financial and tax documentation landscape. There are several other forms and documents that often accompany or complement the W-2, each serving its unique purpose in helping taxpayers and professionals alike navigate the complexities of tax filing.
Understanding these forms and how they relate to the W-2 is crucial for a comprehensive approach to tax filing. Each document plays a specific role in ensuring taxpayers meet their obligations and take advantage of any opportunities to reduce their tax liabilities. Armed with the right information and documents, navigating tax season can be a smoother and less daunting process.
IRS Form 1099-MISC: Similar to the W-2, this form is used to report income paid to freelancers and independent contractors. While the W-2 reports wages, tips, and other compensation paid to an employee, the 1099-MISC captures payments made to non-employees for services performed.
IRS Form 1099-NEC: As a replacement for reporting nonemployee compensation on 1099-MISC, Form 1099-NEC is now used. This change, starting in the tax year 2020, makes it akin to the W-2 in its purpose to report payments, specifically for nonemployee services.
IRS Form 1040: While not used for reporting wages directly, Form 1040 is the individual income tax return form where W-2 information is ultimately reported by the taxpayer. It aggregates income from W-2s and other sources to determine the taxpayer's total income and tax liability.
IRS Form W-4: This form is completed by employees to indicate their tax situations to their employers, unlike the W-2, which employers fill out. The connection is that the information on Form W-4 helps determine the withholding amounts that will be reported on the W-2.
IRS Form 941: Employers use this quarterly tax form to report income taxes, Social Security tax, or Medicare tax withheld from employee's paychecks, and W-2 forms provide the annual summary of this information. Both documents are integral to the payroll reporting process.
IRS Form W-9: Used by employers to request taxpayer identification number (TIN) and certification from individuals or entities. Like the W-2, it is a crucial document for ensuring accurate tax reporting but for different tax purposes and contexts.
IRS Form W-3: This form serves as a transmittal document for all W-2s sent by an employer to the Social Security Administration. It summarizes the information on the individual W-2 forms, making it an essential companion document to the W-2.
IRS Form 1095-B or 1095-C: These forms report individuals' health insurance coverage, similar to how W-2 forms report an employee's income and tax deductions. They are an essential part of the tax documents that individuals may need to submit as part of their tax return, depending on their insurance and employment status.
When it comes to filling out the IRS W-2 form, paying close attention to detail is crucial. Here's a list of dos and don'ts that can help guide you through the process.
Do:
Don't:
Understanding the intricacies of tax documents can be challenging. There are several misconceptions about the IRS W-2 form that can cause confusion. Here, we aim to clarify the most common misunderstandings.
Only full-time employees receive a W-2. This is incorrect. Both full-time and part-time employees should receive a W-2 form if they have income, tax, or other deductions withheld from their paycheck.
A W-2 form is not necessary for independent contractors. This is true but it’s important to clarify. Independent contractors do not receive a W-2 form because they are not employees. Instead, they typically receive a 1099 form that reflects their earnings.
Filing taxes is not required if you don't receive your W-2. This misconception could lead to tax penalties. If you don’t receive a W-2, it's your responsibility to contact your employer or the IRS to obtain the necessary information to file your tax return.
A W-2 form shows your entire earnings for the year. This statement requires clarification. A W-2 form reflects the income from an employer after deductions such as taxes, retirement contributions, and health insurance premiums. It may not represent an individual’s total income for the year, especially if they have multiple income sources.
An incorrect W-2 form means you cannot file your taxes. If your W-2 form has errors, you should immediately request a corrected form from your employer. However, if the corrected form does not arrive in time, you may use Form 4852 as a substitute W-2 to file your taxes on time.
Electronic W-2 forms are optional for employers to provide. This is partially correct. The IRS allows employers to provide W-2 forms electronically, but they must have the consent of the employee to do so. Without consent, they must furnish paper copies.
Clearing up these misconceptions ensures that both employees and employers can manage their tax responsibilities effectively, avoiding unnecessary stress and potential penalties.
When it comes time to tackle the IRS W-2 form, both employers and employees need to pay close attention to the details. This form is crucial for reporting an employee's annual wages along with the taxes withheld from their paycheck. Navigating through it might seem complex, but understanding these key takeaways can make the process smoother.
By keeping these takeaways in mind, employees can better understand their tax obligations and refunds, while employers can maintain compliance with federal tax requirements. Remember, the goal is to ensure that all information is transparent, accurate, and submitted on time. A successful tax season starts with a well-prepared W-2.
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