Form W-2 Wage and Tax Statement: 2017 Guide
What Form W-2 Is For
Form W-2, officially called the "Wage and Tax Statement," is the document your employer uses to report how much money you earned and how much tax was withheld from your paycheck during the year. Think of it as your official earnings report card that the government uses to verify the income you claim on your tax return.
Employers must issue Form W-2 to any employee who earned at least $600 during the year, or from whom they withheld any federal income tax, Social Security, or Medicare tax—even if the wages were less than $600. This form shows your total wages, tips, federal and state income tax withheld, Social Security and Medicare taxes, retirement plan contributions, and various other benefits you may have received IRS.gov.
When you receive your W-2, you'll get several copies: Copy B for filing with your federal tax return, Copy C for your personal records, and Copy 2 for filing with your state tax return (if applicable). Your employer sends Copy A directly to the Social Security Administration, which shares the information with the IRS.
When You’d Use Form W-2 (Late/Amended Filing)
Standard Timeline
For the 2017 tax year, employers were required to provide W-2 forms to employees by January 31, 2018—the same deadline for filing with the Social Security Administration. This unified deadline ensures everyone has their tax documents early enough to file returns IRS.gov.
If Your W-2 Is Late
If you don't receive your W-2 by mid-February, first contact your employer's payroll or human resources department. If that doesn't resolve the issue, contact the IRS at 1-800-829-1040. You may need to file your return using Form 4852, a substitute for missing or incorrect W-2 forms.
Corrected Forms (W-2c)
Sometimes mistakes happen. If your employer discovers an error—such as incorrect wages, wrong Social Security number, or miscalculated tax withholding—they must file Form W-2c (Corrected Wage and Tax Statement) as soon as possible. You'll receive a corrected copy showing both the originally reported amounts and the correct amounts IRS.gov.
If you receive a W-2c after you've already filed your tax return, you may need to file an amended return using Form 1040X if the corrections affect your tax liability. However, if the correction is minor and doesn't change what you owe or your refund amount, you may not need to amend.
Key Rules or Details for 2017
Several important rules affected W-2 reporting for the 2017 tax year:
Unified Deadline: For 2017, the deadline for employers to file with the SSA and furnish forms to employees was consolidated to January 31, 2018. This represented a significant change from prior years when employers had until the end of February to file paper forms with the SSA IRS.gov.
Extensions Limited: Extensions of time to file W-2 with the SSA were no longer automatic for 2017. Employers could only request a single 30-day extension using Form 8809, and the IRS would grant it only for extraordinary circumstances like natural disasters. This extension did not apply to the employee furnishing deadline, which remained January 31 IRS.gov.
Electronic Filing Threshold: Employers filing 250 or more W-2 forms were required to file electronically. Filing paper forms when e-filing is required could result in penalties.
Additional Medicare Tax: Employers were required to withhold an additional 0.9% Medicare tax on wages exceeding $200,000 per year. This appears in the Medicare tax withheld amount but has no employer match IRS.gov.
Social Security Numbers Required: Unlike some other tax forms, W-2s could not use truncated Social Security numbers. The full nine-digit SSN was required for both filing with the SSA and providing to employees.
Step-by-Step (High Level)
Step 1: Receive Your W-2
Your employer must provide your W-2 by January 31. Check that all information is accurate, including your name, Social Security number, address, and the amounts in each box.
Step 2: Verify the Information
Compare your W-2 to your final pay stub from December. Box 1 (wages) might differ from your gross pay because it excludes pre-tax deductions like 401(k) contributions and health insurance premiums. Box 2 shows federal income tax withheld, boxes 3 and 5 show Social Security and Medicare wages, and boxes 4 and 6 show the taxes withheld for these programs.
Step 3: Use It to File Your Tax Return
Attach Copy B of your W-2 to your Form 1040 if you're filing a paper return. If you're e-filing, you'll enter the information from your W-2 into the tax software, which will transmit it electronically. Keep Copy C for your records.
Step 4: File State Returns
If your state has income tax, use Copy 2 with your state tax return.
Step 5: Keep Records
Retain your W-2 copies for at least three years after the date you file your tax return, or longer if your return is audited or you file a claim for a refund.
For employers, the process involves calculating wages and withholdings, completing W-2 forms for each employee, filing Copy A with the SSA along with Form W-3 (transmittal form), and distributing copies to employees by January 31.
Common Mistakes and How to Avoid Them
Incorrect Social Security Numbers
Double-check that the SSN on the W-2 matches the employee's Social Security card exactly. Mismatches can delay tax refunds and cause SSA earnings record problems. Employers should verify SSNs using the Social Security Administration's verification services IRS.gov.
Wrong Filing Method
Employers sometimes download Copy A from IRS.gov and file it with the SSA. This doesn't work—the SSA only accepts official red-ink forms or electronic submissions. Downloaded versions are for informational purposes only IRS.gov.
Formatting Errors
Common mistakes include omitting decimal points, using light-colored ink instead of black, making entries too small, adding unnecessary dollar signs, or cutting, folding, and stapling forms. Forms W-2 are machine-read, and these issues interfere with processing IRS.gov.
Name Formatting
The employee's first name and middle initial go in the first box, surname in the second box, and suffix (Jr., Sr., III) in the optional third box. Incorrect formatting causes processing problems.
Mismatched EINs
The employer's name and Employer Identification Number (EIN) on Forms W-2 and W-3 must exactly match what appears on employment tax returns like Form 941 IRS.gov.
Retirement Plan Checkbox
Employers sometimes incorrectly check the "Retirement plan" box in box 13. This should only be checked if the employee was an active participant in an employer retirement plan during the year, which affects their ability to deduct IRA contributions.
What Happens After You File
Once your employer files your W-2 with the SSA:
Information Sharing
The SSA processes the information and shares wage and withholding data with the IRS. This typically happens within a few weeks of filing. The SSA uses your earnings information to calculate your future Social Security and Medicare benefits.
IRS Matching
When you file your tax return, the IRS compares the income and withholding amounts you report against what your employer reported on your W-2. Discrepancies can trigger correspondence from the IRS or delay your refund.
Earnings Record
Your W-2 information becomes part of your permanent Social Security earnings record. You can review this record by creating an account at SSA.gov. Check periodically to ensure all your earnings are properly credited.
Refund Processing
If your W-2 information matches what you reported and you're owed a refund, the IRS typically processes it within 21 days for e-filed returns, though paper returns take longer.
Audit Considerations
The IRS uses W-2 data when selecting returns for audit. Significant discrepancies between reported income and W-2s increase audit risk.
For employers, the SSA will reject W-2 submissions with certain errors, such as when Social Security wages and tips are zero but Social Security tax is greater than zero, or when Medicare wages are less than the sum of Social Security wages and tips. Rejected forms must be corrected and resubmitted IRS.gov.
FAQs
Q1: What if I worked for multiple employers during 2017?
You should receive a separate W-2 from each employer. When filing your tax return, include all W-2s and report the total income from all sources. Each employer withholds taxes independently, so you might have overpaid Social Security tax if your combined wages exceeded the 2017 limit of $127,200. You can claim a credit for excess Social Security tax withheld on Form 1040.
Q2: Why is my W-2 wage amount different from my gross pay?
Box 1 (federal wages) often differs from your total gross pay because it excludes pre-tax deductions such as 401(k) contributions, flexible spending account (FSA) contributions, health insurance premiums, and certain other benefits. These are excluded from federal taxable wages but may still be included in Social Security and Medicare wages (boxes 3 and 5).
Q3: My employer went out of business. How do I get my W-2?
If your employer has closed and you can't reach them, contact the IRS at 1-800-829-1040. Be prepared to provide your name, address, Social Security number, phone number, dates of employment, employer's name and address, and an estimate of your wages and withholding. The IRS will contact the employer on your behalf and may authorize you to file using Form 4852 if the W-2 cannot be obtained.
Q4: Can I file my taxes without my W-2?
Generally, no. You should wait for your W-2 before filing. If January 31 passes and you haven't received it, contact your employer. If you still don't have it by mid-February, contact the IRS. In exceptional cases where you cannot obtain your W-2, you may be able to file using Form 4852, but this should be a last resort and may delay your refund.
Q5: What should I do if I receive a W-2c after filing my return?
Review the corrected form carefully. If the corrections change your tax liability—meaning you owe more or are due a larger refund—you should file an amended return using Form 1040X. Include the W-2c with your amended return. If the changes don't affect your tax liability (such as a corrected address), you generally don't need to amend. When in doubt, consult a tax professional.
Q6: What penalties can employers face for late or incorrect W-2s?
For 2017 W-2s (filed in 2018), penalties ranged from $50 to $260 per form depending on how late the correction was made, with annual maximum penalties between $187,500 and $3,218,500 (higher for larger employers). Intentional disregard carries a penalty of at least $530 per form with no maximum. Separate penalties apply for failing to provide correct copies to employees IRS.gov.
Q7: How long should I keep my W-2?
Keep your W-2 for at least three years after the date you file your tax return using that W-2. The IRS recommends keeping it longer if you file a claim for a refund after filing your return, if you owe additional tax and don't file a return by the due date, or if you file an amended return. Many tax professionals recommend keeping W-2s for seven years or even permanently as proof of earnings for Social Security benefit calculations.
