What each box on your W2 means

Your W2 has 14 numbered boxes plus some unnumbered ones. Each box reports a different kind of income or tax information your employer withheld. The boxes you use depend on what you earned and where you live — you won't use all of them, and that's normal.

The form is split into two halves. The top half (boxes 1–6) shows federal income tax information. The bottom half (boxes 7–14) shows Social Security, Medicare, and other taxes. The right side shows state and local tax information if your employer withheld for those.

You'll receive your W2 by January 31 each year. Your employer keeps a copy, the IRS gets a copy, and you get copies to file with your tax return and to keep for your records. If you worked for multiple employers, you'll receive a separate W2 from each one.

Key Takeaways

  • Box 1 shows your taxable wages after pre-tax deductions like health insurance, and this is the number you use on your tax return.
  • Boxes 2 and 3 show federal and Social Security tax already withheld by your employer, which reduces what you owe.
  • Box 5 shows Medicare wages and box 6 shows Medicare tax withheld — these are separate from Social Security even though they're both payroll taxes.
  • Boxes 12 and 13 show additional taxes or benefits like dependent care or health savings account contributions, and the letter code next to the amount tells you what kind.
  • If you worked in multiple states, each state's information appears in its own section on the right side of the form.

Boxes 1 through 6: Federal income and payroll taxes

Box 1 (Wages, tips, other compensation) is the number you put on your tax return. It's your gross pay minus pre-tax deductions like health insurance premiums, 401(k) contributions, or dependent care expenses. This is not your take-home pay — it's the amount the IRS considers taxable income.

Box 2 (Federal income tax withheld) shows how much your employer sent to the IRS on your behalf throughout the year. When you file your return, the IRS compares this number to what you actually owe. If box 2 is larger than your tax bill, you get a refund. If it's smaller, you owe the difference.

Boxes 3 and 4 (Social Security wages and tax) show your earnings subject to Social Security tax and how much was withheld. Social Security tax is 6.2% of your wages up to a cap that changes each year. If you earned over that cap, box 3 will show the capped amount, not your total earnings.

Boxes 5 and 6 (Medicare wages and tax) work the same way as Social Security but for Medicare. Medicare tax is 1.45% of all your wages with no cap. If you earned over $200,000 (or $250,000 if married filing jointly), an additional 0.9% Medicare tax may appear here.

Boxes 7 through 11: Additional income and taxes

Box 7 (Social Security tips) appears only if you received tips and reported them to your employer. Tips are subject to Social Security tax just like regular wages.

Box 8 (Allocated tips) is used only in certain service industries where tips are pooled. Your employer may allocate a portion of total tips to you based on your hours worked, even if you didn't receive that exact amount in cash.

Box 9 is not used on current W2 forms.

Box 10 (Dependent care benefits) shows the value of dependent care assistance your employer provided — for example, a subsidy for daycare or an FSA for dependent care. This amount is not taxable income, but it does reduce your taxable wages in box 1.

Box 11 (Nonqualified plans) appears if you received distributions from a nonqualified deferred compensation plan or a section 457(b) plan. This is uncommon for most workers and typically applies to government or highly compensated employees.

Box 12: Codes that change what the number means

Box 12 can appear multiple times on your W2, and each entry has a letter code that tells you what the amount represents. The code matters because different types of income are taxed differently or reduce your taxable income in different ways.

Common codes include: D (401(k) contributions — reduces your taxable income), E (403(b) contributions for teachers and nonprofit workers), F (403(b) catch-up contributions if you're 50 or older), G (403(b) taxable distributions), H (health savings account contributions — reduces your taxable income), J (nontaxable sick pay), K (20% excise tax on excess golden parachute payments), and W (employer-provided health insurance premiums for S corporation shareholders).

If you see a code you don't recognize, the IRS publishes a full list on the W2 instructions page. Your employer or payroll provider can also explain what each code on your specific W2 means.

Box 13: Checkboxes for special situations

Box 13 has three checkboxes: Statutory employee, Deceased, and Pension plan. Most workers will see none of these checked.

If "Statutory employee" is checked, you're classified as self-employed for Social Security and Medicare purposes even though your employer issued a W2. This affects how you file taxes and what deductions you can take. If "Deceased" is checked, the W2 is for someone who died during the year. If "Pension plan" is checked, you're covered by a pension plan, which can affect whether you can deduct IRA contributions.

Box 14 and state/local sections: Other income and location-based taxes

Box 14 (Other) is a catch-all for income or deductions that don't fit elsewhere — for example, union dues, educational assistance, or moving expenses. The label next to the amount tells you what it is. Some of these reduce your taxable income; others don't. Check the label or ask your employer if you're unsure whether to include it on your return.

The right side of your W2 shows state and local tax information. If you worked in only one state, you'll see one state section. If you worked in multiple states, you'll see a separate section for each one. Each section mirrors the federal side: state wages, state income tax withheld, local wages, and local income tax withheld. Use these numbers when you file your state and local tax returns.

What to do if your W2 has an error

Check your W2 against your final pay stub from the year. The numbers should match or be very close — the only difference might be if your employer made a final adjustment in December. If you spot a mistake, contact your employer's payroll department right away. They can issue a corrected W2 (called a W2-C) and file it with the IRS.

If you've already filed your return and then receive a corrected W2, you'll need to file an amended return using Form 1040-X. The IRS will process both your original and amended return, and you'll receive a new notice showing the correct amount owed or refunded.

Keep all copies of your W2 — original, corrected, and any correspondence about corrections — for at least three years in case the IRS asks questions about your return.

Frequently Asked Questions

Why is box 1 different from my take-home pay?

Box 1 shows taxable wages after pre-tax deductions but before taxes are withheld. Your take-home pay is box 1 minus federal income tax (box 2), Social Security tax (box 4), Medicare tax (box 6), and any other taxes or deductions your employer made. That's why it's always lower than box 1.

Do I need to report my W2 on my tax return?

The IRS receives a copy of your W2 automatically from your employer. When you file your return, the IRS matches your reported income to the W2 they received. You don't have to attach your W2 to your return, but you do need to report the income from box 1 on your Form 1040.

What if I received a W2 but I was a contractor?

You should have received a 1099-NEC instead. Contact your employer and ask them to issue a corrected 1099-NEC and file a corrected W2 showing zero income. If they don't, you can file your return using the 1099-NEC and note the discrepancy, or contact the IRS for help.

Can I use my W2 to get a loan or prove my income?

Yes. Lenders, landlords, and government programs often accept W2s as proof of income. Box 1 is the number they'll look at. Some may also ask for recent pay stubs to confirm you're still employed. Keep digital and paper copies of your W2 for this purpose.