Tax Year 2024 – To Be Filed in 2025
Overview
IRS Form W-2, Wage and Tax Statement, is a mandatory form that employers must provide to employees each year. It reports total wages paid and the taxes withheld from an employee’s paycheck during the calendar year.
Form W-2 is required under Internal Revenue Code (IRC) § 6051, which mandates that employers furnish each employee with a written statement of wages and tax withholdings. Employers must also file the form with the Social Security Administration (SSA).
It plays a critical role in the individual tax filing process and is essential for accurate income reporting and tax compliance.
Why Form W-2 Is Important
- Required for Filing Tax Returns
Form W-2 provides income and withholding data needed to complete Form 1040 for federal tax filing. - Verifies Employment Income
It is used by financial institutions, lenders, and agencies to confirm annual wages for mortgage, loan, or credit applications. - Supports Social Security and Medicare Reporting
The Social Security Administration uses the data from Form W-2 to determine your future retirement and Medicare benefits. - IRS Compliance
Reporting income from W-2 forms ensures you are compliant with federal and state tax laws, and helps avoid penalties or audits.
Legal Basis
- IRC § 6051 – Requires employers to furnish wage and tax statements
- IRC § 6041 and 6041A – Reporting requirements for payments made in the course of business
- Treasury Regulation § 31.6051-1 – Provides guidance on contents and deadlines for W-2 issuance
Example
Scenario:
In 2024, Maria worked full-time at a marketing firm. Her pay details are:
- Gross Wages: $65,000
- Federal Income Tax Withheld: $7,800
- Social Security Tax Withheld: $4,030 (6.2% of $65,000)
- Medicare Tax Withheld: $942.50 (1.45% of $65,000)
Her W-2 will show the following:
- Box 1: $65,000
- Box 2: $7,800
- Box 3: $65,000
- Box 4: $4,030
- Box 5: $65,000
- Box 6: $942.50
Maria will use this W-2 to file her federal tax return (Form 1040) by April 15, 2025.
Step-by-Step: What to Do With Your W-2
- Receive Your W-2 from your employer no later than January 31, 2025.
- Verify Accuracy – Check your name, Social Security Number, wage figures, and tax withholdings.
- Use It to File Taxes – Enter the information from your W-2 when completing your Form 1040.
- Keep a Copy – Retain a copy for at least three years for recordkeeping and audit purposes.
- Report Any Errors – If any information is incorrect, request a corrected form (Form W-2c) from your employer.
Conclusion
Form W-2 is a required document for employees and is used by the IRS and SSA to track income and tax compliance. If you worked as an employee in 2024, this form is essential for your 2025 tax return. Always check for accuracy and take action quickly if you haven’t received it or notice errors.
Call to Action
If you need help interpreting your W-2 or want professional assistance with filing your taxes, schedule a consultation with Anshul Goyal, CPA EA FCA. He is a licensed Certified Public Accountant in the United States, admitted to practice before the IRS as an Enrolled Agent. He also serves as a cross-border tax expert, supporting American businesses and Indian residents in the U.S. with IRS compliance, reporting, and tax planning.
Top 5 FAQs About IRS Form W-2
1. When will I receive my W-2 for the 2024 tax year?
By January 31, 2025. Employers are legally required to issue it by this date.
2. What if I don’t receive my W-2?
First, contact your employer. If unresolved, you can use Form 4852 as a substitute to file your tax return.
3. Can I file my taxes without a W-2?
Yes, but only if you use Form 4852 to estimate your wages and taxes withheld. This should be a last resort.
4. Do all workers receive a W-2?
No. Only employees receive a W-2. Independent contractors receive Form 1099-NEC instead.
5. How long should I keep my W-2?
You should keep your W-2s for at least three years after the due date of your tax return.
About Our CPA
Anshul Goyal, CPA EA FCA is a licensed Certified Public Accountant in the United States and an Enrolled Agent authorized to represent clients before the IRS. He specializes in tax litigation and cross-border taxation, particularly for American businesses and Indian individuals living in the U.S. Anshul offers expert guidance on IRS compliance, international reporting, and complex tax matters.
Schedule a meeting with Anshul by clicking here: https://calendly.com/anshulcpa/
Disclaimer
This blog is intended for informational purposes only and does not constitute legal, tax, or financial advice. Please consult with a qualified tax professional regarding your specific situation.