Form W-2 explained: What it is, who gets one, and how to use it in 2025

If you’ve ever received a paycheck from an employer, chances are you’ve also received a Form W-2.

It's one of the most critical documents for filing your US tax return – and yet, for many taxpayers, it still feels like a mystery wrapped in a sea of tax codes and boxes.

So, what is a W-2 form, who gets one, and how do you make sense of all the numbers on it – especially in 2025, with a few updates to keep in mind?

Let’s break it down.

What is a W-2 form and why is it important?

Form W-2, officially called the Wage and Tax Statement, is a document your employer must provide to you and the IRS at the beginning of each year.

It summarizes:

• Your wages
• Federal, state, and local taxes withheld
• Social Security and Medicare contributions
• Employer-sponsored benefits

The W-2 is the starting point for preparing your federal and state tax returns, and it’s essential for confirming your taxable income and verifying whether you overpaid or underpaid during the year.

Why it matters:

• You can’t file your taxes without it (unless using a substitute like Form 4852).
• It helps the IRS match your return to the income reported by your employer.
• It affects how much you get in your tax refund – or how much you owe.
• It’s also key to qualifying for things like mortgages, loans, and Social Security benefits later in life.

Who receives a W-2 form?

If you’re classified as an employee, whether full-time, part-time, or seasonal, your employer must issue a W-2 if they paid you $600 or more during the year or withheld any taxes (income, Social Security, or Medicare).

If you’re a freelancer, contractor, or gig worker, you’ll usually get a Form 1099-NEC instead – not a W-2. The distinction comes down to employment classification.

You might receive more than one W-2 if:

• You changed jobs during the year:  If you left one job for another, you'll get a W-2 from each employer for the time you worked there.
• You had multiple employers:  If you worked for more than one company during the year, each employer is required to send you a W-2 form.
• Your company was acquired by another business: If your employer was acquired or merged with another company, you may receive a W-2 from both the old and new employers for the year.

What’s new for W-2 forms in 2025?

For the 2024 tax year (filed in 2025), there are a few notable updates:

• Electronic filing requirement: If your business files 10 or more information returns, you're now required to e-file, including W-2s.
• Deadlines: W-2s must be submitted to the SSA and sent to employees by Jan 31, 2025 – no exceptions. Extensions are limited and must be requested with Form 8809 (for filing) and Form 15397 (for employee copies).
• Box 12 updates: New codes related to expanded benefits and employer contributions may appear here – check carefully.

When should you receive your W-2 form?

Important deadlines:

• January 31, 2025: Your employer must send your W-2 to you and file it with the SSA.
• If you don’t have your W-2 by mid-February, it’s time to follow up.

If your employer is unresponsive or you suspect the form is lost, you can:

1. Contact your HR/payroll department.
2. Call the IRS at 800-829-1040.
3. File using Form 4852 as a substitute.

How to read your W-2 form (without panicking)

A W-2 contains multiple boxes, and understanding each one helps you report your income accurately.

Here’s a quick breakdown:

Pro tip: Double-check your name, SSN, and address – errors can cause filing headaches.

Form W-2 preview

What if your W-2 is wrong or missing?

Don’t ignore it – errors or delays can lead to filing headaches or even IRS penalties.

If your W-2 has incorrect information (wrong SSN, misspelled name, incorrect wages or withholdings), contact your employer immediately and request a corrected W-2 (Form W-2c).

If you haven’t received your W-2 by mid-February:

• Check your mailing and email addresses on file with your employer.
• Ask for a digital copy if they offer secure online portals.
• If no resolution, call the IRS at 800-829-1040 for help.

Still no luck?

You can file your tax return using Form 4852 (a substitute W-2), but:

• You’ll need to estimate your income and withholdings based on pay stubs.
• Be prepared for potential follow-up by the IRS, especially if numbers are off.

Pro tip: If you eventually receive your actual W-2 after filing with Form 4852 and the numbers differ, you may need to file an amended return using Form 1040-X.

W-2 vs. W-4 vs. 1099: What’s the difference?

 

Do expats receive W-2 forms?

Yes – if you’re a US expat working for a US-based company, you may receive a W-2 just like stateside employees.

However, if you’re employed by a foreign company, you likely won’t get a W-2 and will need to rely on foreign wage statements and Form 2555 (Foreign Earned Income Exclusion).

How to file taxes using your W-2

1. Wait for all W-2s (if you had multiple jobs): Make sure you’ve received a W-2 from every employer you worked for during the year before starting your return.
2. Use the information to complete your Form 1040: Enter your wages and tax withholdings from the W-2 into your federal tax return to calculate how much you owe or will be refunded.
3. If filing electronically, upload/import your W-2 or enter it manually: Most tax software allows you to auto-import your W-2 from your employer or manually type in the details.
4. If paper-filing, attach Copy B of your W-2 to the front of your return: This physical copy is required by the IRS when mailing your tax return.
5. Keep a copy for your records (for at least 3 years): W-2s are essential for audits, loan applications, and verifying Social Security earnings – don’t toss them.

Final thoughts: W-2s don’t have to be confusing

If you're employed in the US (or by a US employer abroad), the W-2 form is your ticket to a smooth tax season. It tells the IRS what you earned, what you paid in, and what you might still owe – or be owed.

Just make sure it’s accurate, complete, and submitted on time. And if anything seems off? Talk to a tax professional.

“When in doubt - W-2 it out... and let a CPA do the decoding.”