What each box on your W2 tells you

Your W2 form shows how much you earned in a year and how much tax your employer withheld. The form has 14 numbered boxes, and each one reports a different kind of income or deduction. Most people only need to look at boxes 1, 2, and 5 to file their taxes, but understanding what the others contain helps you spot errors before you file.

The form is divided into two main sections: the top half shows your personal information and your employer's information, and the bottom half contains the numbered boxes. The boxes on the left side (1 through 6) report wages and withholding. The boxes on the right side (7 through 14) report other kinds of compensation or deductions that apply only in certain situations.

Key Takeaways

  • Box 1 shows your taxable wages for the year, and box 2 shows federal income tax your employer withheld from your paychecks.
  • Box 5 shows Social Security wages, and box 6 shows Medicare wages — these are usually the same as box 1 unless you have certain retirement contributions.
  • Boxes 7 and 8 show Social Security and Medicare taxes withheld, which your employer calculates automatically based on your wages.
  • Boxes 12 and 13 contain codes that identify special kinds of income or deductions, such as contributions to a 401(k) or health insurance premiums.
  • You should receive your W2 by January 31 each year, and you need it to file your tax return or to claim certain tax deductions.

Boxes 1 through 6: wages and withholding

Box 1 (Wages, tips, other compensation) is the total amount of money you earned from your job before any deductions. This is the number you use on your tax return to calculate how much tax you owe. It includes your regular salary or hourly wages plus tips, bonuses, and any other compensation your employer paid you during the year.

Box 2 (Federal income tax withheld) shows how much money your employer took out of your paychecks for federal income tax. This is not a tax you owe — it is money your employer already sent to the IRS on your behalf. When you file your tax return, the IRS compares this number to the actual tax you owe. If too much was withheld, you get a refund. If too little was withheld, you owe the difference.

Box 3 (Social Security wages) and Box 4 (Social Security tax withheld) are related. Box 3 shows the wages subject to Social Security tax, and box 4 shows how much Social Security tax your employer withheld. For most people, box 3 equals box 1. However, if you made contributions to a traditional 401(k) or certain other retirement plans, box 3 may be lower than box 1 because those contributions reduce your Social Security wages.

Box 5 (Medicare wages and tips) and Box 6 (Medicare tax withheld) work the same way. Box 5 shows wages subject to Medicare tax, and box 6 shows how much Medicare tax your employer withheld. Unlike Social Security, there is no wage cap for Medicare tax, so box 5 usually equals box 1. If you earned over a certain threshold (the amount changes each year), you may also owe an additional Medicare tax, which appears separately on your tax return.

Boxes 7 through 11: employer-specific taxes and benefits

Box 7 (Social Security tips) only appears if you received tips that you did not report to your employer. This is rare, because most workers report tips through their employer. If this box has a number and you did not report those tips, you may need to file an amended return.

Box 8 (Allocated tips) appears only if you work in food service or another tipped industry and your employer allocated tips to you based on your sales. This is separate from tips you actually received and reported.

Box 9 (Dependent care benefits) shows the value of dependent care benefits your employer provided, such as a subsidy for daycare. This amount is usually not taxable, but it reduces the amount you can claim on your own tax return for dependent care expenses.

Box 10 (Nonqualified plans) and Box 11 (Nonqualified deferred compensation) appear only if your employer offers a nonqualified retirement or deferred compensation plan. These are uncommon and typically available only to highly paid employees. If either box has a number, you should consult a tax professional about how it affects your return.

Box 12: codes that identify special income and deductions

Box 12 contains one or more letter codes followed by a dollar amount. Each code represents a different kind of income or deduction. Your employer uses these codes to report things that do not fit into the other boxes. The most common codes are:

  • Code A: Uncollected Social Security or Medicare tax on tips or certain other compensation.
  • Code D: 401(k) contributions (money you chose to put into a retirement account before taxes).
  • Code E: 403(b) contributions (similar to 401(k), used by schools and nonprofits).
  • Code F: 457(b) contributions (similar to 401(k), used by government employers).
  • Code G: Elective salary reduction contributions to a Section 457 plan.
  • Code H: Employer contributions to a health savings account (HSA).
  • Code DD: Cost of employer-sponsored health insurance coverage (informational only; not taxable).
  • Code W: Employer contributions to a health or dependent care flexible spending account.

If box 12 contains a code you do not recognize, you can look it up on the IRS website or ask your employer what it means. The amount shown in box 12 is usually subtracted from box 1 to arrive at your taxable income, but some codes are informational only and do not reduce your taxable wages.

Boxes 13 through 14: additional information

Box 13 contains checkboxes for three situations: whether you are a statutory employee, whether you received sick pay not included in box 1, or whether you are a third-party sick pay recipient. Most workers will have none of these boxes checked. If any are checked, it affects how you report your income on your tax return.

Box 14 (Other) is a catch-all box where your employer can report information that does not fit elsewhere. This might include union dues, professional licenses, or other deductions specific to your job or employer. The label next to the amount tells you what the deduction is for. Some of these amounts may be deductible on your tax return, and some may not be — check the label or ask your employer.

How to check your W2 for errors

Before you file your tax return, compare your W2 to your final pay stub from the year. Your box 1 total should match the total wages shown on that pay stub. If the numbers do not match, contact your employer's payroll department and ask them to explain the difference. Common reasons include bonuses paid after the final regular paycheck, corrections to previous paychecks, or adjustments for overpayment.

Check that your name, address, and Social Security number are correct at the top of the form. If any of this information is wrong, ask your employer to issue a corrected W2 (called a W2-c). Also verify that your employer's name and Employer Identification Number (EIN) are correct. If your employer's information is wrong, the IRS may not match your W2 to your tax return.

If you worked for multiple employers during the year, you will receive a separate W2 from each one. When you file your tax return, you must report income from all of them. The IRS receives copies of all your W2s, so if you leave one out, the IRS will notice and may send you a notice asking for the missing income.

What to do with your W2 after you receive it

You should receive your W2 by January 31 of the year following the year you worked. If you do not receive it by early February, contact your employer and ask them to send it or issue a replacement. You can also contact the IRS at 1-800-829-1040 if your employer does not respond.

Keep your W2 with your tax records for at least three years. If you file your tax return electronically, you do not need to mail a paper copy of your W2 to the IRS — your tax software will transmit the information. However, you should keep the original or a copy for your records in case the IRS asks questions about your return later.

If you are self-employed or have income other than W2 wages, you will also need to file a Schedule C or other forms along with your W2 information. If you have questions about how to report your W2 income on your tax return, you can consult a tax professional or use IRS publications to understand the rules.

Frequently Asked Questions

What if my W2 shows the wrong amount in box 1?

Contact your employer's payroll department immediately and ask them to review your pay records. If an error is confirmed, your employer must issue a corrected W2 (Form W2-c) and send it to you and the IRS. Do not file your tax return until you receive the corrected form, because filing with the wrong amount could delay your refund or trigger an IRS notice.

Can I file my tax return before I receive my W2?

The IRS allows you to file as early as late January, but you should wait until you have your W2 in hand. If you file early without your W2 and the amount on your W2 differs from what you reported, you will need to file an amended return. It is faster and simpler to wait a few days and file once.

Why is box 1 different from my total paychecks?

Box 1 shows gross wages before any deductions. Your paychecks are smaller because money was taken out for federal and state income tax, Social Security, Medicare, and any voluntary deductions like health insurance or retirement contributions. Your W2 shows the gross amount; the deductions appear in other boxes.

Do I need to report box 14 deductions on my tax return?

It depends on what the deduction is. Some box 14 items, like union dues or professional licenses, may be deductible as miscellaneous expenses, but the rules change from year to year. Check the label next to the amount or consult a tax professional to determine whether you can deduct it.

What if I lost my W2?

Contact your employer and ask for a duplicate or replacement W2. If your employer no longer exists or will not respond, you can contact the IRS at 1-800-829-1040 and request a transcript of your W2 information. The IRS can provide this transcript for free, and you can use it to file your tax return.