A W-2 form, or Wage and Tax Statement, is a tax document issued by an employer that reports an employee’s annual income, taxes withheld, benefits received, and retirement contributions for the previous year. Employees use this form to file their federal and state tax returns with the IRS. Employers must provide W-2 forms by January 31st each year to allow employees enough time to file taxes before the April 15th deadline.
Understanding the W-2 Form
A W-2 form consists of three main sections:
- Left side – Employee’s personal information, Social Security number, employer’s EIN, and employer’s address.
- Right side – Wages earned, federal income tax withheld, and benefits.
- Bottom – State and local tax information.
Why Is the W-2 Important?
The W-2 is essential because it:
- Ensures accurate tax filing.
- Shows taxes paid and determines if an employee owes taxes or qualifies for a refund.
- Is required for employees, whereas independent contractors receive a 1099 form instead.
Steps to Filing Taxes Using a W-2
- Collect all W-2s – If multiple employers, ensure all forms are received.
- Input information accurately – Enter income, Social Security number, Medicare wages, and tax withholdings exactly as shown.
- File your tax return – Use e-filing software or mail your return. Many tax programs allow for electronic uploads of W-2s.
Common Errors to Avoid
Errors on a W-2 can lead to tax issues or refund delays. Double-check for:
- Incorrect personal details – Name, Social Security number, and address.
- Wrong income amounts – Compare Box 1 wages to your year-end pay stub.
- Inaccurate tax withholdings – Verify federal and state tax deductions against payroll records.
Need Help?
The Campaign for Working Families offers free tax preparation assistance to individuals and families. Call (215) 454-6483 or visit www.cwfphilly.org for more information.
