Form W-2 Wage and Tax Statement 2014: A Complete Guide
Form W-2 is one of the most important tax documents you'll receive each year—it's the official record of how much you earned and what taxes were taken out of your paycheck. If you worked as an employee during 2014, understanding your W-2 is essential for filing your tax return correctly and avoiding problems with the IRS and Social Security Administration (SSA).
What Form W-2 Is For
Form W-2 serves as the official wage and tax statement that every employer must provide to employees who earned $600 or more during the year (or any amount if income, Social Security, or Medicare taxes were withheld). Think of it as your annual paycheck summary that reports your total earnings and the various taxes your employer withheld throughout the year.
This form serves multiple critical purposes. First, it provides you with the exact figures you need to complete your federal tax return—particularly the amount of wages you earned (Box 1) and federal income tax already withheld (Box 2). Second, it reports your earnings to the Social Security Administration, which uses this information to calculate your future Social Security and Medicare benefits. Third, it helps state and local governments track your income for state and local tax purposes.
Your employer creates multiple copies of your W-2: Copy B goes with your federal tax return, Copy C is for your personal records, Copy 2 accompanies any state or local tax returns, and Copy A goes to the SSA. The employer keeps Copy D for their records. Each copy contains identical information but serves different purposes in the tax reporting system.
When You’d Use Form W-2 (Late/Amended Forms)
Normal Timeline
For the 2014 tax year, employers were required to furnish your W-2 to you by February 2, 2015. If you left your job before December 31, 2014, your employer could give you the form any time after your employment ended, but no later than February 2, 2015. If you specifically requested your W-2, your employer had 30 days to provide it—either within 30 days of your request or 30 days after your final wage payment, whichever came later.
Late W-2 Situations
If you didn't receive your W-2 by mid-February 2015, you should first contact your employer to request it. Make sure they have your current address. If you still cannot obtain your W-2, contact the IRS Information Reporting Customer Service at 1-866-455-7438. Be prepared to provide your name, address, Social Security number, phone number, employer's name and address, employment dates, and an estimate of your wages and taxes withheld.
Corrected W-2 (Form W-2c)
If you discover errors on your W-2—such as incorrect name, Social Security number, or wrong dollar amounts—you need a corrected form. Ask your employer to file Form W-2c (Corrected Wage and Tax Statement) with the SSA and provide you with copies. Common reasons for corrections include incorrect Social Security wages, wrong tax withholding amounts, or name/SSN mistakes. You must keep copies of all corrected W-2c forms to file with your tax return and to resolve any discrepancies with the SSA or IRS.
Key Rules or Details for 2014
Several important rules and thresholds applied specifically to the 2014 tax year:
Social Security Limits
The Social Security tax rate for 2014 was 6.2% on wages up to the Social Security wage base. If you earned more than $7,254 in combined Social Security and railroad retirement (RRTA) taxes from multiple employers during 2014, you could claim a credit for the excess on your tax return.
Additional Medicare Tax
Beginning in 2013 and continuing through 2014, employers were required to withhold an additional 0.9% Medicare tax on wages exceeding $200,000 in a calendar year. This additional tax applies only to employees—there is no employer match. Your regular Medicare tax (1.45%) plus any Additional Medicare Tax withheld appears in Box 6 of your W-2.
Health Coverage Reporting
For 2014, many employers began reporting the cost of employer-sponsored health coverage in Box 12 using code DD. This reporting requirement was informational only—the amount shown is not taxable income. However, transitional relief applied to certain small employers and certain types of plans.
Flexible Spending Accounts
For plan years beginning after December 31, 2012, health flexible spending arrangements (FSAs) were limited to $2,500 in employee salary reduction contributions. If you participated in an FSA during 2014, this limit applied to your contributions.
Earned Income Credit Notice
Employers were required to notify employees who had no income tax withheld that they might be eligible for the Earned Income Credit (EIC). This notice appeared on the back of Copy B or was provided separately. For 2014, if your adjusted gross income fell below certain thresholds (which varied based on filing status and number of qualifying children), you might qualify for this refundable credit.
Step-by-Step (High Level)
Using your 2014 Form W-2 to complete your tax return involves several straightforward steps:
Step 1: Verify Your Personal Information
When you receive your W-2, immediately check that your name, Social Security number, and address are correct. Even small errors can cause processing delays or problems with your Social Security earnings record. If you find mistakes, contact your employer immediately to request a corrected Form W-2c.
Step 2: Understand the Key Boxes
Box 1 shows your total taxable wages—this is what you'll report on the "wages" line of your Form 1040, 1040A, or 1040EZ. Box 2 shows federal income tax already withheld—this counts toward your total tax payment for the year. Boxes 3 and 5 show your Social Security and Medicare wages (often the same as Box 1, but sometimes different due to pre-tax deductions). Boxes 4 and 6 show the Social Security and Medicare taxes withheld.
Step 3: Match Your W-2 to Your Tax Return
Transfer the information from Box 1 to the wages line on your tax return, and Box 2 to the federal tax withheld line. If you had multiple jobs in 2014, you'll need to add up the amounts from all your W-2 forms. Keep all copies of your W-2s with your tax records—the IRS recommends keeping them for at least three years, but you should keep Copy C until you start receiving Social Security benefits to protect your earnings record.
Step 4: Check for Special Reporting Items
Review Box 12 for any letter codes indicating special payments or benefits such as retirement plan contributions (codes D, E, F, S), health savings account contributions (code W), or dependent care benefits. Box 13 checkboxes tell you if you participated in a retirement plan (which affects IRA deduction limits) or received statutory employee treatment. Box 14 may contain state-specific information like disability insurance or union dues.
Step 5: File State and Local Returns
Use Copy 2 of your W-2 for any state or local tax returns. Boxes 15-20 contain state and local wage and tax information. Some states have different rules for what counts as taxable wages, so these amounts may differ from your federal taxable wages in Box 1.
Common Mistakes and How to Avoid Them
Mistake #1: Accepting a W-2 with Errors
Many people receive W-2s with incorrect information but fail to get them corrected before filing taxes. Always verify your name matches your Social Security card exactly, your SSN is correct, and the dollar amounts match your pay stubs. If anything looks wrong, request a corrected W-2c immediately—don't wait until tax filing time.
Mistake #2: Losing Track of Multiple W-2s
If you worked for multiple employers during 2014, you must report income from all jobs. Each employer will send a separate W-2, and the IRS receives copies of all of them. Failing to report even one W-2 will trigger IRS notices. Keep a checklist of all your employers and make sure you receive a W-2 from each one.
Mistake #3: Misunderstanding Box 12 Codes
Box 12 can contain various letter codes representing different types of income or benefits. For example, code DD (health coverage cost) is informational and not taxable, while code V (nonstatutory stock option income) is already included in Box 1 as taxable wages. Not understanding these codes can lead to double-reporting income or missing deductions. Refer to the detailed Box 12 code explanations in the IRS instructions or consult a tax professional if you're unsure.
Mistake #4: Filing with an Individual Taxpayer Identification Number (ITIN)
Employers should never accept an ITIN in place of a Social Security number for employee identification or W-2 reporting. ITINs are only for people not eligible for U.S. employment who need identification for other tax purposes. An ITIN begins with "9" and has a "7" or "8" as the fourth digit. If you received a W-2 with an ITIN, this needs to be corrected—you must obtain a valid Social Security number from the Social Security Administration.
Mistake #5: Throwing Away Copy C
Many people discard their W-2 copies after filing taxes, but the IRS recommends keeping Copy C for at least three years. More importantly, you should keep it until you begin receiving Social Security benefits—it may be your only proof of earnings if there's ever a question about your work record or earnings in a particular year. This directly affects your future Social Security benefit calculations.
Mistake #6: Not Claiming Excess Social Security Tax
If you had multiple employers in 2014 and your total Social Security tax withheld exceeded $7,254, you're entitled to a refund of the excess—but only if you claim it on your tax return. The IRS won't automatically issue this refund. Review all your W-2s and calculate the total Social Security tax withheld (Box 4 on each W-2) to determine if you qualify for this credit.
What Happens After You File
Once you file your tax return with your W-2 information, several processes begin behind the scenes:
IRS Matching Process
The IRS uses sophisticated computer systems to match the W-2 information your employer reported directly to the SSA with the income you report on your tax return. Your employer filed Copy A of your W-2 with the SSA (either by paper by March 2, 2015, or electronically by March 31, 2015), and the IRS receives this data. If the amounts don't match what you reported, you'll receive a notice from the IRS requesting clarification or additional taxes.
Social Security Earnings Record
The SSA uses the wage information from your W-2 to update your lifetime earnings record, which determines your future Social Security retirement, disability, and survivor benefits. Higher lifetime earnings generally mean higher benefits. This is why correcting any errors on your W-2 is crucial—mistakes in reporting can reduce your future benefits. You can create a "my Social Security" account at www.socialsecurity.gov to review your earnings record and ensure all your wages have been properly credited.
State and Local Processing
If you filed state or local tax returns, those jurisdictions also match the information from Copy 1 of your W-2 against your state/local returns. This helps prevent tax fraud and ensures proper tax collection at all government levels.
Refund or Balance Due
The IRS calculates your total tax liability for 2014, then subtracts the federal income tax withheld (shown in Box 2 of all your W-2s). If you had too much withheld, you receive a refund. If not enough was withheld, you'll owe additional taxes. For most people who only have W-2 income and no complex deductions, refunds are typically issued within 21 days of e-filing or six weeks of paper filing.
Long-Term Record Keeping
Your employer keeps Copy D of your W-2 for four years. You should keep Copy C for at least three years after filing (the IRS statute of limitations period), but ideally until you claim Social Security benefits. If the IRS audits your return or questions your reported income, your W-2 is your primary proof of wages and withholding.
FAQs
Q1: What should I do if I don't receive my W-2 by February?
First, contact your employer to make sure they have your correct address and request that they send or resend your W-2. If you still cannot obtain it, contact the IRS at 1-866-455-7438. The IRS will contact your employer on your behalf. You'll need to provide your personal information, employer details, and estimates of your wages and taxes withheld. If tax filing deadlines approach and you still don't have your W-2, you can file using Form 4852 (Substitute for Form W-2) with your best estimates, though this may delay processing.
Q2: Can I use a W-2 that I downloaded and printed from IRS.gov?
No. Your employer cannot file a W-2 with the SSA that was simply downloaded and printed from IRS.gov. The SSA only accepts electronically filed W-2s or the official red-ink versions (or specifically approved substitute versions). As an employee, you'll always receive an official W-2 directly from your employer—never download a blank W-2 and try to fill it in yourself, as this won't be accepted for tax filing purposes.
Q3: Why is the amount in Box 1 different from my total salary?
Box 1 shows taxable wages, which may be less than your gross pay for several reasons. Pre-tax deductions such as 401(k) contributions, health insurance premiums paid through a cafeteria plan, flexible spending account contributions, and dependent care assistance reduce your taxable wages. These amounts still count toward Social Security and Medicare wages (Boxes 3 and 5), which is why those boxes often show higher amounts than Box 1. Conversely, some items like taxable fringe benefits may increase Box 1 above your stated salary.
Q4: What does the "Retirement plan" checkbox in Box 13 mean for my taxes?
If this box is checked, it means you were an active participant in your employer's retirement plan (such as a 401(k), 403(b), or pension plan) at some point during 2014—even if you didn't make contributions. This affects your ability to deduct traditional IRA contributions. If you or your spouse were covered by a retirement plan at work and your income exceeds certain limits, your IRA deduction may be reduced or eliminated. See IRS Publication 590 for the specific income limits that applied to 2014.
Q5: I worked two jobs in 2014 and had too much Social Security tax withheld. How do I get it back?
If you had multiple employers and the total Social Security tax withheld (add up Box 4 from all your W-2s) exceeded $7,254 for 2014, you can claim the excess as a credit on your Form 1040 or 1040A. You don't need to file any special forms—simply follow the instructions for the "Excess social security and tier 1 RRTA tax withheld" line on your tax return. The credit will either increase your refund or reduce any balance due. Note that each individual employer withholds correctly based on what they pay you—the excess occurs because no single employer knows about your other jobs.
Q6: What is code DD in Box 12, and do I owe taxes on it?
Code DD reports the total cost of employer-sponsored health coverage, including both the employer's and your contributions to health insurance premiums. This reporting is informational only—the amount shown with code DD is not taxable income and should not be included in Box 1. Congress required this reporting so workers would know the total cost of their health benefits. You don't need to do anything with this information for tax purposes, but it can help you understand the full value of your compensation package.
Q7: Can my employer give me my W-2 electronically instead of on paper?
Yes, but only if you voluntarily consent to receive it electronically. Your employer cannot require you to accept electronic delivery. If you agree to electronic delivery, you must be able to access, print, and retain the electronic W-2. Your employer must notify you when the W-2 is available online and provide clear instructions for accessing it. You can withdraw your consent at any time, though the withdrawal may not take effect until the following year. Many employees find electronic W-2s convenient because they can access them immediately without waiting for mail delivery.
Additional Resources
- IRS Information Reporting: 1-866-455-7438
- Social Security Administration Employer Services: www.socialsecurity.gov/employer
This guide reflects the rules and requirements specific to the 2014 tax year based on IRS official instructions. Tax laws change frequently, so always consult current IRS publications or a qualified tax professional for the most up-to-date guidance.
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