W-2 Tax FAQ

A W-2 (Wage and Tax Statement) is the IRS form your employer sends you each January reporting your annual wages and the taxes withheld from your pay. You use it to file your federal and state income tax returns.

Your employer is legally required to send your W-2 by January 31st of the year following the tax year. So your 2025 W-2 should arrive by January 31, 2026. Allow a few extra days for mail delivery before assuming it's late.

Contact your employer first, most issues are resolved with a single phone call. If they can't help, contact the IRS at 1-800-829-1040 after February 14. They'll reach out to your employer on your behalf. As a last resort, you can file using Form 4852 (Substitute for W-2).

Box 1 shows your taxable wages, not gross wages. Pre-tax deductions like 401(k) contributions, traditional health insurance premiums, and HSA contributions reduce Box 1. So Box 1 is usually less than what you earned in gross pay. This is normal.

Box 12 reports special items like retirement contributions (Code D for 401k, AA for Roth 401k), employer-sponsored health coverage (Code DD), and HSA contributions through payroll (Code W). Each letter has a specific meaning. See our Box 12 codes guide for the full list.

No. Code DD reports the cost of your employer-sponsored health coverage. It's informational only, required disclosure under the Affordable Care Act. You don't owe any tax on this amount.

Contact your employer immediately and request a corrected W-2 (called a W-2c). Don't file your tax return with incorrect information, the IRS will match your return to the W-2 they received and discrepancies can trigger an audit notice.

Enter each one separately into your tax software. The software will combine them automatically. If your combined wages exceed the Social Security wage base ($176,100 in 2025 / $184,500 in 2026), you may have had too much SS tax withheld and can claim the excess as a credit on Schedule 3.

Where this comes from: SSA, 2026 COLA fact sheet (wage base set under 42 U.S.C. §430), checked 2026-08-01 · Social Security Act §230 (42 U.S.C. §430); incorporated by IRC §3121(a)(1) for wages and IRC §1402(b) for self-employment income.

Yes, but only as a last resort. If your W-2 is missing and you've contacted your employer and the IRS, you can file using Form 4852 (Substitute for W-2). Estimate your wages from your final pay stub. If your real W-2 arrives later and the numbers differ, file an amended return (Form 1040-X).

The W-4 is what you fill out for your employer to set your withholding. The W-2 is what your employer sends you at year-end summarizing your wages and what was withheld. The W-4 controls; the W-2 reports.

Pre-tax retirement contributions (like 401k) reduce Box 1 (federal taxable wages) but not Box 3 (Social Security wages). So if you contributed to a 401k, Box 3 will typically be higher than Box 1 by the amount of your contribution.

Either your wages were below the threshold for withholding, or you claimed exempt status on your W-4 (Step 4(c) writing 'Exempt'). If your income is high enough that you owe taxes, you'll need to make up the difference at tax time, possibly with a penalty.