How to read your W-2 form

Your W-2 form provides a summary of your earnings and tax withholdings for the year. Understanding each section of your W-2 helps you review your income, ensure accurate tax reporting, and prepare for tax filing.

Things to know

• For employers reviewing W-2 forms using a W-3 Form, employee names are listed at the bottom with corresponding wage and tax information appearing above the name.

Wages and tax withholdings

The following boxes on the W-2 form report your federal taxable income and the taxes withheld from your pay during the year:

• Box 1 reports the total wages, tips, bonuses, and other taxable compensation.
• Box 2 reports the total federal income tax withheld from your earnings.
• Box 3 reports the total wages subject to Social Security tax.
• Box 4 reports the total Social Security tax withheld from your pay.
• Box 5 reports the total wages subject to Medicare tax.
• Box 6 reports the total Medicare tax withheld from your pay.

Tip reporting

The W-2 form tracks reported and allocated tips separately to ensure accurate tax calculations:

• Box 7 reports the tips you reported to your employer that are subject to Social Security tax.
• Box 8 reports the tips your employer allocated to you. These are IRS-required estimates used when reported tips fall below expected levels based on total sales. Allocated tips reported in Box 8 are not included in the total wages shown in Box 1.

Additional compensation and deductions

Specific benefits and retirement contributions are coded into the following sections of the W-2 form:

• Box 10 reports dependent care benefits provided by your employer.
• Box 11 reports distributions received from an employer’s non-qualified deferred compensation plan.
• Box 12 reports additional compensation details such as 401(k) contributions using specific IRS codes.
• Box 13 indicates if you are a statutory employee, participated in a retirement plan, or received third-party sick pay.
• Box 14 reports on additional items not reported elsewhere such as State disability insurance withheld, Uniform or union dues, or Health insurance premiums deducted. 
• Box 14b reports the IRS tip code for the job where you earned tips, also called a Treasury Tipped Occupation Code (TTOC). Starting with 2026 W-2s, you need this tip code to claim the no-tax-on-tips deduction. A tip code of 000 means your W-2 doesn't list a tipped occupation, so ask your employer to check your tip code.

State and local tax information

The bottom section of the W-2 form contains details for state and local tax filing:

• Boxes 15 through 20 show state and local taxable wages and the corresponding tax withholdings.
• These boxes also include the specific state and locality names associated with the reported earnings.