What each box on your W2 means
A W2 form has 14 numbered boxes plus your personal information at the top. Each box reports a different kind of income or tax withholding. The form is divided into two halves: the left side shows what you earned, and the right side shows what was taken out of your paychecks. Understanding what goes in each box helps you spot errors before you file your tax return and know whether your employer withheld the right amount.
The boxes are not in the order you need them for taxes — the IRS groups them by type instead. Learning what each one contains takes about five minutes, and you only need to understand the ones that apply to your situation.
Key Takeaways
- Boxes 1, 2, and 5 show your wages and federal and state income tax withheld — these are the numbers you use on your tax return.
- Boxes 3 and 4 show Social Security wages and tax withheld, which may differ from box 1 if you have certain types of income or deductions.
- Boxes 6 and 7 show Medicare wages and tax withheld, calculated the same way as Social Security but with a different rate.
- Boxes 12, 13, and 14 contain special codes and amounts for retirement plans, health insurance, and other employer benefits.
- Compare your W2 to your final paystub to catch errors — the W2 should match your year-to-date totals from December.
Boxes 1, 2, and 5: Your wages and federal withholding
Box 1 shows your taxable wages for the year — the total amount your employer paid you before any deductions. This is the number you report on your tax return as income. It includes your regular salary or hourly pay plus any bonuses, commissions, or tips you reported to your employer. It does not include money taken out for health insurance, retirement contributions, or other pre-tax deductions.
Box 2 shows federal income tax your employer withheld from your paychecks. Your employer calculates this based on the W4 form you filled out when you were hired. If you owed taxes when you filed last year, or if you expect to owe this year, you may have underpaid. If you got a large refund, you may have overpaid and could adjust your W4 to take home more money each week.
Box 5 shows your Medicare wages. In most cases this matches box 1, but it can be higher if you received certain employer benefits or lower if you had specific deductions. Medicare tax applies to all wages with no income limit, so this number is usually the same as what you earned.
Boxes 3, 4, 6, and 7: Social Security and Medicare taxes
Box 3 shows your Social Security wages — the amount your employer used to calculate Social Security tax. This is usually the same as box 1, but it has a cap: in 2024, Social Security tax only applies to the first $168,600 of wages. If you earned more than that, box 3 will be capped at that amount even if box 1 is higher.
Box 4 shows Social Security tax withheld. The rate is fixed at 6.2 percent of your Social Security wages. You can verify this by multiplying box 3 by 0.062. If the number does not match, contact your employer's payroll department.
Box 6 shows your Medicare wages, which is almost always the same as box 5. Unlike Social Security, Medicare has no wage cap — you pay Medicare tax on all your earnings no matter how much you make.
Box 7 shows Medicare tax withheld at 1.45 percent of your Medicare wages. If you earned over $200,000 (or $250,000 if married filing jointly), an additional 0.9 percent Medicare tax applies, and that extra amount appears here as well.
Box 12: Employer benefits and pre-tax deductions
Box 12 contains a letter code followed by a dollar amount. The letter tells you what type of benefit or deduction the money represents. Common codes include D for 401(k) contributions, E for health insurance premiums, and G for employer-provided adoption assistance. Your employer may have multiple box 12 entries if you participated in more than one type of plan.
The amounts in box 12 were subtracted from your pay before federal income tax was calculated, which is why they do not appear in box 1. This is how pre-tax deductions reduce your taxable income. If you contributed to a 401(k), health savings account, or dependent care account, those amounts show up here with their corresponding codes.
You do not report box 12 amounts on your tax return — they are informational only. Your employer already accounted for them by excluding them from box 1. However, you should verify that the amounts match what you remember contributing.
Boxes 13 and 14: Retirement plans and other information
Box 13 contains checkboxes for retirement plan information. If you participated in a retirement plan at your employer — such as a 401(k), pension, or 403(b) — the box will be checked. This tells the IRS that you have access to an employer plan, which affects whether you can deduct traditional IRA contributions on your tax return. The other checkboxes indicate whether you are a statutory employee or if you had a second job.
Box 14 is a catch-all for other employer-provided information that does not fit elsewhere. This might include union dues, educational assistance, or nontaxable fringe benefits. The label next to the amount tells you what it represents. Most people can ignore this box unless the label indicates something that affects their taxes.
Your personal information and employer details
The top of the form contains your name, address, and Social Security number, plus your employer's name, address, and Employer Identification Number (EIN). Verify that your name and Social Security number are spelled and numbered correctly — errors here can delay your refund or cause the IRS to mismatch your W2 with your tax return.
Check that your address is current. If you moved during the year, update your address with the IRS before filing so your refund reaches you. The employer information should match what you see on your paystubs. If your employer's name or EIN looks wrong, contact payroll to confirm before you file.
How to spot errors on your W2
Compare your W2 to your final paystub from December. Box 1 should match the year-to-date gross pay on that paystub. Box 2 should match the year-to-date federal tax withheld. If the numbers do not match, your employer made an error — this happens most often when someone changes jobs mid-year or when payroll makes a data entry mistake.
If you spot an error, contact your employer's payroll or human resources department right away. They can issue a corrected W2 (called a W2-c) and file it with the IRS. Do not file your tax return until you have the corrected form. If your employer does not respond or refuses to correct it, you can file a complaint with the IRS using Form 13909.
Also check that you received a W2 from every employer you worked for during the year. If you are missing one, contact that employer. You should receive all W2s by January 31 each year.
Frequently Asked Questions
Why is my box 1 different from my box 3?
Box 1 shows all your taxable wages, while box 3 is capped at the Social Security wage limit. In 2024, that limit is $168,600. If you earned more than that, box 3 stops at the cap but box 1 shows your full earnings. This is normal and not an error.
What does it mean if box 2 is zero?
Box 2 shows federal income tax withheld. If it is zero, your employer did not take out any federal tax from your paychecks. This can happen if you claimed exempt on your W4 or if your income was low enough that no tax was owed. You may owe taxes when you file, so check your tax return carefully.
Do I need to report box 12 on my tax return?
No. Box 12 amounts are already excluded from box 1, so your employer accounted for them. You report box 1 on your return, not box 12. Box 12 is informational only and helps you track what you contributed to retirement and health plans.
What if I worked for two employers?
You will receive a separate W2 from each employer. Add up the box 1 amounts from all your W2s and report the total on your tax return. You also add up all the box 2 amounts to see your total federal withholding. File all your W2s with your return.
Can I file my taxes before I receive my W2?
You should wait until you have all your W2s. If you file before receiving them and the numbers are different than you estimated, you may have to file an amended return. Employers must send W2s by January 31, so waiting a few weeks prevents this problem.