25a — W-2 Federal Tax Withholding Updated for tax year 2025

What this line means

Federal income tax your employer withheld from your paychecks during the year, as shown in Box 2 of your W-2. This is money already paid to the IRS on your behalf. It counts as a payment toward your total tax liability. If your withholding exceeds your tax, you get a refund. If it falls short, you owe the difference.

Does this apply to you?

• You worked as a W-2 employee and had federal income tax withheld from your paychecks
• You had multiple W-2 jobs during the year and need to add up Box 2 from each
• Your employer withheld federal tax from bonuses, commissions, or stock compensation

Easy to overlook

Multiple W-2s mean multiple withholding amounts to add If you worked for more than one employer during the year, each W-2 has its own Box 2 withholding amount. You must add them all together for line 25a. Missing a W-2 from a short-term job means you fail to claim withholding you already paid, reducing your refund or increasing your balance due. ¹ [SOURCE: IRS Publication 505 — Tax Withholding and Estimated Tax]

Withholding from stock compensation is often at a flat rate When your employer withholds tax on RSU vesting, stock option exercises, or bonuses, they typically withhold at a flat 22% (or 37% for amounts over $1 million). Your actual tax rate on that income may be higher or lower. High earners often find the flat 22% withholding insufficient and owe a balance at filing time. ² [SOURCE: General filing pattern — W-2 Box 2 vs Box 1 confusion]

Watch out for this

Using W-2 Box 1 (wages) instead of Box 2 (federal income tax withheld) on this line. Box 1 is your income, not your payment. Line 25a is specifically the amount of tax withheld — the money your employer already sent to the IRS. Using the wrong box dramatically overstates your payments and produces an incorrect refund calculation.

Related lines on your return

• Line 1a — Form 1040 — W-2 wages (Box 1); your income from employment
• Line 25d — Form 1040 — Total federal income tax withheld; combines all withholding sources
• Line 33 — Form 1040 — Total payments; includes withholding plus estimated payments and refundable credits