What you see on a W2 form

A W2 form is a single page, printed or digital, that shows how much your employer paid you and how much they withheld for taxes during the year. The form is divided into boxes — some on the left side, some on the right, some stacked in the middle. Each box holds a specific number or piece of information. Your name and Social Security number appear at the top. Your employer's name, address, and EIN (Employer Identification Number) appear below that. The rest of the page is boxes numbered 1 through 20, though not every box applies to every job.

The W2 you receive in January or early February looks the same whether you print it from your employer's portal, receive it by mail, or read it from a tax software. The layout is set by the IRS, so the position of each piece of information never changes. This consistency matters because tax software and the IRS both read W2s in the same order — if a number is in Box 1, that's where the software looks for your wages.

Key Takeaways

  • Box 1 shows your taxable wages for federal income tax — this is usually your gross pay minus pre-tax deductions like health insurance or 401(k) contributions.
  • Boxes 2, 4, and 6 show federal, Social Security, and Medicare taxes your employer already withheld from your paychecks.
  • Box 5 shows tips you reported to your employer, and Box 7 shows tips you didn't report but the IRS knows about anyway.
  • Boxes 12 and 13 contain codes and amounts for special situations like HSA contributions, dependent care, or nonqualified deferred compensation.
  • You receive Copy B to file with your tax return, and your employer keeps Copy A for their records.

The top section: your information and your employer's information

The very top of the W2 shows your full name, address, and Social Security number. Below that is your employer's name, address, and their EIN. This section also includes a box for your employer's state ID number if they operate in multiple states. Check that your name and Social Security number match your Social Security card exactly — if they don't, the IRS may not match the W2 to your tax return, and you could face delays or notices.

Your employer's information matters less for your own filing, but it's how the IRS cross-checks that the W2 they receive from your employer matches the W2 you report on your return. If your employer's EIN is wrong, the IRS may not be able to verify the form, which can trigger a letter asking you to confirm the information.

Boxes 1 through 6: wages and taxes withheld

Box 1 (Wages, tips, other compensation) is the number you use most often. It shows your taxable wages for federal income tax purposes. This is usually your gross pay (what you earned before any deductions) minus certain pre-tax deductions. Pre-tax deductions include contributions to a traditional 401(k), health insurance premiums, dependent care accounts, and transit benefits. Bonuses, commissions, and overtime are included in Box 1. If you received a signing bonus, it appears here too.

Box 2 (Federal income tax withheld) shows how much your employer deducted from your paychecks for federal income tax. This is based on the W4 form you filled out when you were hired. If you claimed zero allowances on your W4, more money was withheld. If you claimed many allowances, less was withheld. The amount in Box 2 is what you've already paid toward your federal tax bill for the year.

Box 3 (Social Security wages) shows the amount subject to Social Security tax. For most people, this is the same as Box 1. However, if you earned more than the Social Security wage base (which changes each year), Box 3 will be capped at that limit. In 2024, the limit was $168,600, meaning wages above that amount don't go into Box 3.

Box 4 (Social Security tax withheld) shows how much your employer deducted for Social Security. The rate is fixed at 6.2 percent of your Social Security wages. Your employer also pays 6.2 percent on your behalf, but that amount doesn't appear on your W2.

Box 5 (Medicare wages and tips) shows the amount subject to Medicare tax. Unlike Social Security, there is no wage cap for Medicare — all your wages are subject to Medicare tax, no matter how much you earn. This box is usually the same as Box 1 unless you have special compensation that's excluded.

Box 6 (Medicare tax withheld) shows how much your employer deducted for Medicare. The standard rate is 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 was withheld, and that extra amount also appears in Box 6.

Boxes 7 through 11: tips, dependent care, and other items

Box 7 (Social Security tips) shows tips you reported to your employer during the year. If you work in food service, hospitality, or another tipped industry, you report tips to your employer regularly, and they appear here. This amount is included in your Social Security and Medicare wages.

Box 8 (Allocated tips) appears only if you work at a large food or beverage establishment and your reported tips were less than 8 percent of the establishment's gross receipts. The IRS requires employers to allocate the difference, and that allocated amount appears here. You don't owe additional tax on allocated tips, but you do report them on your return.

Box 9 (Advance EIC payment) is rarely used today. It shows payments your employer made to you under the now-discontinued Earned Income Credit advance program. If this box has an amount, you'll need to account for it on your return.

Box 10 (Dependent care benefits) shows the value of dependent care benefits your employer provided — such as an on-site daycare subsidy or dependent care FSA contributions. This amount is not included in your taxable wages in Box 1, but you may owe tax on it depending on your situation.

Box 11 (Nonqualified plans) shows distributions from a nonqualified deferred compensation plan or a section 409(a) plan. This is income you deferred in a previous year but received in the current year. It's taxable income and should be included on your return.

Box 12: codes for special compensation and deductions

Box 12 is where employers report amounts that don't fit into the standard wage boxes. Each amount in Box 12 comes with a letter code that tells you what the amount represents. Common codes include:

  • Code D: 401(k) contributions (pre-tax). This amount was deducted from your pay and is not included in Box 1.
  • Code E: 403(b) contributions (pre-tax), used by nonprofit and government employees.
  • Code F: 457(b) contributions (pre-tax), used by government employees.
  • Code G: 403(b) catch-up contributions, if you're age 50 or older.
  • Code H: HSA (Health Savings Account) contributions your employer made on your behalf.
  • Code S: Employer-sponsored health insurance premiums (pre-tax).
  • Code W: Pretax Section 125 cafeteria plan contributions (health insurance, dependent care, or transit).
  • Code Y: Deferrals under a section 409(a) nonqualified deferred compensation plan.
  • Code Z: Income under a nonqualified deferred compensation plan that you received in the current year.

If you see a code you don't recognize, the IRS publishes a full list of Box 12 codes on their website. The code tells you whether the amount reduces your taxable income, is already taxed, or needs to be reported separately on your return.

Boxes 13 through 20: checkboxes and state information

Box 13 contains three checkboxes: "Statutory employee," "Retirement plan," and "Third-party sick pay." A checkmark in "Statutory employee" means you're classified as an employee for tax purposes even though you may work independently. A checkmark in "Retirement plan" means you're covered by a retirement plan at work, which affects whether you can deduct IRA contributions. A checkmark in "Third-party sick pay" means your employer used a third party to administer sick pay.

Boxes 14 through 20 contain state and local tax information. Box 14 is a catch-all for other information your employer wants to report. Boxes 15 through 20 show state income tax withheld, state wages, local income tax withheld, and local wages. The number of boxes used depends on how many states and localities you worked in. If you worked in only one state, you'll see information in Boxes 15 and 16. If you worked in multiple states, each state gets its own row.

Copy B versus Copy A: which one you keep

Your employer sends you Copy B of the W2 — this is the copy you use to file your tax return. Copy A goes to the Social Security Administration. Copy 2 goes to your state tax authority if your state has an income tax. You should receive Copy B by January 31 of the year following the tax year. Keep Copy B with your tax records for at least three years, though the IRS recommends keeping it longer.

If you file electronically using tax software, you can enter the information from your W2 directly into the software, or you can upload an image of the form. If you file by mail, you attach Copy B to your return. Never send Copy A to the IRS — that copy is for the Social Security Administration only.

Frequently Asked Questions

Why is Box 1 different from my gross pay?

Box 1 shows taxable wages for federal income tax, which excludes certain pre-tax deductions. If you contribute to a 401(k), health insurance, dependent care account, or transit benefits, those amounts are subtracted from your gross pay before Box 1 is calculated. Your pay stub shows both your gross pay and these deductions separately, so you can see the difference.

What if Box 1 on my W2 doesn't match my pay stubs?

Add up all the amounts in Box 1 from each pay stub for the year — they should match the W2. If they don't, contact your employer's payroll department when ready. They may have made an error, or they may have corrected something late in the year that didn't show on your regular stubs. Your employer can issue a corrected W2 (called a W2-c) if needed.

Do I need to report Box 12 amounts on my tax return?

It depends on the code. Amounts with codes D, E, F, G, H, S, and W are pre-tax deductions and are already excluded from Box 1, so you don't report them separately. Amounts with codes Y and Z are income and must be reported. Your tax software will prompt you for Box 12 information and handle it correctly based on the code.

What if I receive a W2 with the wrong amount?

Contact your employer's payroll or HR department and ask them to issue a corrected W2 (Form W2-c). Provide them with the correct information and ask them to file the corrected form with the IRS and send you a copy. You'll then file an amended return (Form 1040-X) using the corrected W2 information. Keep both the original and corrected W2 with your records.

Can I file my return before I receive my W2?

You can file early if your employer provides your W2 information before January 31, but most people wait until they have the actual form in hand. If you file before receiving your W2 and the information on the form differs from what you reported, you may need to file an amended return. It's usually simpler to wait.