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Tax & paperwork

Form W-2

Also called: W2, wage statement

The IRS form your employer sends each January showing your wages, reported tips, and the federal/state/FICA tax withheld for the year.

Form W-2 reports the income an employer paid you and the taxes they withheld. You'll receive one by January 31 from every employer you worked for in the prior calendar year.

For tipped workers, the key boxes are:

  • Box 1 — Wages, tips, other compensation. This is your federal taxable wage income.
  • Box 7 — Social Security tips (tips you reported to the employer).
  • Box 8 — Allocated tips (tips your employer assigned to you based on a sales formula because they believed you under-reported). Allocated tips create a Form 4137 obligation.
  • Box 12 code A — Uncollected Social Security tax on tips, if your direct wages weren't enough to cover the FICA owed on your reported tips. You pay this on your 1040.

If your tips were reported all year and your direct wage was high enough, Boxes 1 and 7 should align with what you actually earned. If they don't — or if Box 8 shows a number — talk to your employer before filing.