Every W-2 employee in the US receives this form each January. Here’s how to read every box and use it to file your taxes correctly.
Table of Contents
What Is Form W-2?
Form W-2 (Wage and Tax Statement) is an IRS form that reports:
- How much you earned from an employer during the year
- How much was withheld for federal, state, and local taxes
- Social Security and Medicare taxes paid
- Retirement plan contributions, health insurance deductions, and other benefits
You need your W-2 to file your tax return. Your employer must send it by January 31 of the following year.
W-2 Box-by-Box Breakdown
Identification Boxes (a–f)
| Box | Label | What It Contains |
|---|---|---|
| a | Employee’s SSN | Your Social Security number |
| b | Employer’s EIN | Employer’s tax identification number |
| c | Employer’s name/address | Company’s legal name and address |
| d | Control number | Employer’s internal tracking number (optional) |
| e | Employee’s name | Your legal name |
| f | Employee’s address | Your current address |
Income and Tax Boxes (1–20)
| Box | Label | What It Contains |
|---|---|---|
| 1 | Wages, tips, other compensation | Your total taxable income (after pre-tax deductions like 401(k) and health insurance) |
| 2 | Federal income tax withheld | Total federal tax taken from paychecks |
| 3 | Social Security wages | Income subject to Social Security tax (max $176,100 in 2026) |
| 4 | Social Security tax withheld | 6.2% of Box 3 |
| 5 | Medicare wages and tips | Income subject to Medicare tax (no cap) |
| 6 | Medicare tax withheld | 1.45% of Box 5 (plus 0.9% additional on income over $200K) |
| 7 | Social Security tips | Tips reported and subject to SS tax |
| 8 | Allocated tips | Tips allocated by employer (tipped employees) |
| 10 | Dependent care benefits | Employer-provided dependent care (up to $5,000) |
| 11 | Nonqualified plan distributions | Distributions from nonqualified deferred compensation plans |
| 12 | Codes | Various compensation/benefits (see Code table below) |
| 13 | Checkboxes | Statutory employee, retirement plan, third-party sick pay |
| 14 | Other | State disability, union dues, educational assistance, etc. |
| 15 | State/Employer’s state ID | State tax information |
| 16 | State wages | Income subject to state income tax |
| 17 | State income tax | State tax withheld |
| 18 | Local wages | Income subject to local tax |
| 19 | Local income tax | Local tax withheld |
| 20 | Locality name | Name of local tax jurisdiction |
Box 12 Codes (Most Common)
| Code | Meaning |
|---|---|
| D | 401(k) elective deferrals (traditional) |
| E | 403(b) contributions |
| AA | Roth 401(k) contributions |
| BB | Roth 403(b) contributions |
| DD | Cost of employer-sponsored health coverage (informational only — not taxable) |
| W | HSA employer contributions |
| C | Taxable group-term life insurance over $50,000 |
| G | 457(b) contributions |
| P | Moving expense reimbursements (military only) |
| Q | Nontaxable combat pay |
Why Box 1 Differs From Your Total Salary
Your Box 1 amount is usually less than your actual annual salary because pre-tax deductions reduce it:
| Deduction | Reduces Box 1? | Example Amount |
|---|---|---|
| 401(k)/403(b) traditional | Yes | $23,500 |
| Health insurance premiums | Yes | $3,000–$8,000 |
| HSA contributions | Yes | $4,300 single |
| FSA contributions | Yes | $3,300 |
| Commuter benefits | Yes | $3,360 |
| Roth 401(k) | No | Shows in Box 12 Code AA |
| Roth IRA | No | Not on W-2 at all |
Example: $80,000 salary - $10,000 (401k) - $4,000 (health) - $2,000 (HSA) = $64,000 in Box 1.
W-2 vs. Other Tax Forms
| Form | Who Gets It | Purpose |
|---|---|---|
| W-2 | Employees | Wages and tax withholding |
| 1099-NEC | Independent contractors | Freelance/contract income |
| 1099-INT | Account holders | Bank interest income |
| 1099-DIV | Investors | Dividend income |
| 1099-B | Investors | Stock/investment sales |
| 1099-R | Retirees | Retirement distributions |
| W-4 | Employees | Tells employer how much to withhold (not filed with taxes) |
Common W-2 Errors and How to Fix Them
| Error | What to Do |
|---|---|
| Incorrect SSN | Contact employer for corrected W-2c |
| Wrong income amount | Match against final pay stub; request W-2c if wrong |
| Missing state tax info | Contact employer — some states don’t have income tax |
| Name misspelled | Request W-2c (must match SSA records) |
| Didn’t receive W-2 | Contact employer by mid-February; then call IRS at 1-800-829-1040 |
Your employer must issue a corrected Form W-2c for any errors. Do not file your taxes with an incorrect W-2 if you know about the error.
Important Deadlines
| Event | Date |
|---|---|
| Employer must mail/provide W-2 | January 31 |
| Contact employer if not received | Mid-February |
| Contact IRS if employer unresponsive | Late February |
| File taxes with Form 4852 (W-2 substitute) | As last resort |
| Tax filing deadline | April 15 |
How Your W-2 Connects to Your Tax Return
When filing Form 1040:
| W-2 Box | Goes On Form 1040 |
|---|---|
| Box 1 (Wages) | Line 1a |
| Box 2 (Federal tax withheld) | Line 25a |
| Box 17 (State tax withheld) | State return + Schedule A (if itemizing) |
If your Box 2 withholding exceeds your total tax liability, you get a refund. If it’s less, you owe. Use the tax bracket calculator to estimate your total liability, and see our W-4 guide to adjust withholding for next year.
