What a W2 shows you and where to find the key boxes

A W2 is a tax form your employer sends you that lists how much you earned and how much tax was withheld from your paychecks. The form has 14 numbered boxes, but you only need to understand a handful of them for most purposes. The boxes are arranged in two columns on the front of the form, and each one contains a specific type of income or tax information.

Your employer is required to send you a W2 by January 31 each year for the previous calendar year. You'll receive a copy to keep, your employer keeps a copy, and a copy goes to the IRS. If you worked for more than one employer during the year, you'll receive a separate W2 from each one.

The form also shows your name, address, Social Security number, and your employer's name and tax identification number at the top. Make sure this information is correct before you use the form for anything — if your name or Social Security number is wrong, contact your employer's payroll department right away.

Key Takeaways

  • Box 1 shows your taxable wages for federal income tax purposes, and Box 2 shows how much federal tax was already withheld from your pay.
  • Box 5 shows your Medicare wages, and Box 6 shows Medicare tax withheld; these are usually the same as or close to your federal wages.
  • Boxes 3 and 4 contain state income tax information if you live in a state with income tax, though some states don't use these boxes.
  • If you received tips, bonuses, or other special forms of pay, they appear in specific boxes — your employer should explain what each amount represents.
  • You need your W2 to file your tax return, and you may also need it to prove your income when explore for loans, housing, or other programs.

Box 1: Your taxable wages for federal income tax

Box 1 is the number you'll use most often. It shows your total wages, salary, tips, and bonuses that are subject to federal income tax. This is usually the amount you earned before any deductions, but some types of pay (like contributions to a traditional 401(k)) are subtracted before this number is calculated.

This is the number you'll report on your federal tax return. If you worked for multiple employers, you'll add up the Box 1 amounts from all your W2 forms to get your total taxable income for the year.

Box 2: Federal income tax withheld

Box 2 shows how much federal income tax your employer took out of your paychecks throughout the year. This is money that already went to the IRS on your behalf. When you file your tax return, the IRS will compare this amount to what you actually owe in taxes.

If Box 2 is larger than what you owe, you'll receive a refund. If it's smaller, you'll owe money when you file. The amount withheld depends on the W4 form you filled out when you started your job — if you had too much or too little withheld, you can adjust your W4 with your employer for the next year.

Boxes 3 and 4: State income tax information

Box 3 shows your state taxable wages, and Box 4 shows state income tax withheld. Not all states have income tax, so these boxes may be blank or zero if you live in a state like Texas, Florida, or Wyoming. If you live in a state with income tax, you'll use these numbers when you file your state tax return.

Some states calculate taxable wages differently than the federal government does, so Box 3 might be different from Box 1. If you worked in more than one state during the year, your W2 will show information for each state separately.

Boxes 5 and 6: Medicare tax information

Box 5 shows your Medicare wages — the amount subject to Medicare tax. Box 6 shows how much Medicare tax was withheld. For most employees, these numbers are the same as or very close to your federal taxable wages in Box 1. Medicare tax is a fixed percentage (2.9% in 2024, split between you and your employer), so the amount withheld is straightforward to calculate.

If you earned over a certain threshold during the year (the threshold varies by filing status and changes annually), you may owe an additional Medicare tax when you file your return. Your W2 won't calculate this for you — it's something you'll handle when you file.

Boxes 7 and 8: Social Security information

Box 7 shows your Social Security wages, and Box 8 shows Social Security tax withheld. Like Medicare, Social Security tax is a fixed percentage (6.2% in 2024, split between you and your employer). These numbers are usually the same as your federal taxable wages, but there's a cap — once you earn over a certain amount in a year, no more Social Security tax is withheld. That cap changes annually.

If you worked for multiple employers and earned over the Social Security wage cap at each job, you may have paid too much Social Security tax combined. You can claim a credit for the overpayment when you file your tax return.

Other boxes: Tips, dependent care, and special situations

Box 12 contains codes and amounts for special types of pay or deductions. Common codes include "D" for 401(k) contributions, "E" for employee health insurance premiums, and "T" for tips reported to your employer. Your employer should provide a legend explaining what each code means on your W2.

Box 10 shows dependent care benefits if your employer offers a dependent care plan. Box 11 shows nonqualified plan distributions if you participated in a special retirement or deferred compensation plan. Most employees won't have amounts in these boxes — they only appear if your employer offers these specific benefits and you used them.

If you received tips that you reported to your employer, they should appear in Box 7 (Social Security wages) and Box 8 (Social Security tax withheld). If you received tips but didn't report them to your employer, you still owe tax on them, but they won't appear on your W2.

How to use your W2 when you file taxes or prove your income

When you file your federal tax return, you'll enter the amount from Box 1 as your income. You'll also report the amount from Box 2 as federal tax already paid. The IRS will use this information to calculate whether you're owed a refund or owe additional tax.

If you need to prove your income for a loan, apartment process, or government program, you can provide a copy of your W2. Most organizations will ask for your most recent W2 or the last two years. Some may ask for a pay stub instead if you're still employed, but a W2 is the official record for the full year.

Keep your W2 forms for at least three years, though the IRS recommends keeping them longer. If you file electronically, you don't need to mail your W2 to the IRS — your employer does that. You only need to keep your copy for your records and to file your return.

Frequently Asked Questions

What should I do if my W2 has the wrong information on it?

Contact your employer's payroll or human resources department right away. They can issue a corrected W2 (called a W2-C) and send the correction to the IRS. Don't file your tax return until you have the corrected form — using wrong information can delay your refund or create problems with the IRS.

Do I need to file my W2 with my tax return?

No. You keep your W2 for your records. Your employer sends a copy to the IRS, and the IRS matches it to your tax return electronically. If you file electronically, you don't attach anything. If you file on paper, you don't include your W2 either — just keep it with your records in case the IRS asks questions later.

What if I didn't receive my W2 by the end of January?

Contact your employer and ask for it. If your employer doesn't respond or says they didn't send it, you can contact the IRS at 800-829-1040. You can also file your tax return using an estimate of your income and file an amended return later when you receive your actual W2, though this may delay your refund.

Can I use my W2 to prove my income for an apartment or loan?

Yes. A W2 is an official record of your annual income and is widely accepted as proof of earnings. Some landlords or lenders may ask for recent pay stubs instead if you're currently employed, but a W2 works for most purposes. Bring the most recent W2 or the last two years if they ask for multiple years of history.

Why is my Box 1 amount different from what I thought I earned?

Box 1 shows taxable wages after certain deductions are subtracted, such as contributions to a traditional 401(k), health insurance premiums, or dependent care plan contributions. These reduce your taxable income but not your gross pay. Your pay stub should show your gross pay and list all deductions separately so you can see where the difference comes from.