How to File Your Tax Return With Two W-2s
When you have multiple W-2s, your total income determines your tax liability. Understand how to properly combine your earnings to ensure accurate tax withholding.
Receiving two or more W-2 forms during a tax year is common. This often happens when an individual changes jobs, holds a part-time job in addition to a full-time position, or works for multiple employers. The primary rule is that all income from every source must be reported to the Internal Revenue Service (IRS) on a single tax return.
Required Information and Documents
Before beginning your tax return, you must have a Form W-2, Wage and Tax Statement, from every employer you worked for during the tax year. Employers are required to send these forms by January 31st of the following year. If you have not received a W-2 from an employer by mid-February, you should contact them directly to request it.
Review each W-2 form, as it contains the information needed for your return. Important boxes include:
- Box 1: Total taxable wages, tips, and other compensation.
- Box 2: Federal income tax withheld by that employer.
- Box 3: Social Security wages.
- Box 4: Social Security tax withheld.
- Box 5: Medicare wages and tips.
- Box 6: Medicare tax withheld.
- Box 17: State income tax withheld.
Combining Your W-2 Information
The central task when filing with two W-2s is to combine the financial data from each form into a single set of totals. You will report the sum of the amounts from each corresponding box on your tax return. For example, you must add the amount from Box 1 of your first W-2 to the amount from Box 1 of your second W-2. This same addition process applies to federal income tax withheld (Box 2) and Social Security wages (Box 3).
A consideration with multiple income sources is the risk of under-withholding. Each employer’s payroll system calculates your tax withholding based on the assumption that it is your only source of income. When the incomes are combined, your total earnings could be pushed into a higher tax bracket than either single job accounted for. This can result in not enough tax being withheld, potentially leading to a tax bill when you file.
For higher-income earners, multiple W-2s can also lead to an overpayment of Social Security taxes. For the 2024 tax year, Social Security tax applies only to the first $168,600 of wages. Each employer will withhold Social Security tax without regard to what other employers have withheld. If your combined wages from Box 3 of all W-2s exceed $168,600, you have likely overpaid. This overpayment can be claimed as a credit on your tax return, which will either increase your refund or lower the amount of tax you owe.
This excess withholding is claimed as a credit on Schedule 3 (Form 1040). This credit only applies if the overpayment is due to having more than one employer. If a single employer withheld too much, you must ask that employer to correct the error and issue a refund.
Filing Your Tax Return
Once you have your combined income and withholding totals, you are ready to complete your tax return. There are two primary methods for filing: using tax preparation software or filing manually with paper forms.
Most taxpayers use tax software, which simplifies the process. The software will prompt you to enter your wage and income information from your first W-2. After completing the first form, the software will provide an option such as “Add another W-2.” You will then repeat the data entry process for your second W-2, and the software automatically performs all the necessary calculations.
If you choose to file a paper return, you will use your pre-calculated totals. On Form 1040, U.S. Individual Income Tax Return, you will manually enter the combined figures onto the appropriate lines. For instance, the sum of Box 1 from all your W-2s is entered on Line 1a. Similarly, your combined federal income tax withheld from Box 2 of all W-2s is entered on Line 25a. If you overpaid Social Security taxes, you will claim this credit on Schedule 3.