What Form W-2 does
Form W-2 reports the wages you earned from an employer during the year, along with federal, state, and local taxes withheld, and other payroll items like retirement contributions or health insurance deductions. Unlike most tax forms, you don’t fill this one out; your employer prepares it and is required to send it to you.

Who receives one
Anyone classified as an employee (as opposed to an independent contractor) receives a W-2 from each employer they worked for during the year. If you changed jobs mid-year, you’ll get a separate W-2 from each employer.

When to expect it
Employers are required to send W-2s to employees by January 31 of the following year, whether by mail or through an online payroll portal.

What to do with it
The figures on your W-2 get entered directly onto your Form 1040; it’s one of the most fundamental documents your personal return relies on. If you have multiple W-2s (from job changes or multiple jobs), all of them need to be included.

W-2 vs. 1099 — a common point of confusion
If you received a W-2, you’re an employee and taxes were already withheld from your pay throughout the year. If you received a 1099 instead, you were paid as an independent contractor, no taxes were withheld, and you’re responsible for handling that yourself; including self-employment tax. Getting this classification wrong (on either side, employer or worker) can create real problems with the IRS.

How Luminary can help
If you’re a business owner issuing W-2s, we help make sure your payroll is set up correctly and your W-2s go out accurately and on time. If you’re an individual with W-2 income we make sure everything is reported correctly together on your 1040.