How to read your W-2 form

Updated January 29, 2026 22:09

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

Note: If you have specific questions about your tax situation, it is best practice to consult a tax professional. For more details, refer to the IRS W-2 Instructions.

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.
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.

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.

Employee Guide: Download your W-2 (or 1099) in 7shifts
Employer Guide: Download Employee W-2s in 7shifts