How to Read Your W-2 Form

Updated February 10, 2025 21:57

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

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

⚠️ If you have more questions, it is best practice to consult a tax professional.

Understanding Your W2

For more details, refer to the IRS W-2 Instructions.

Wages and Tax Withholdings

Box 1: Total wages, tips, bonuses, and other taxable compensation.
Box 2: Federal income tax withheld from your earnings.
Box 3: Wages subject to Social Security tax.
Box 4: Social Security tax withheld from your pay.
Box 5: Wages subject to Medicare tax.
Box 6: Medicare tax withheld.

Tip Reporting

Box 7: Tips you reported to your employer that are subject to Social Security tax.
Box 8: Tips your employer allocated to you (not included in Box 1).

Additional Compensation and Deductions

Box 10: Dependent care benefits provided by your employer.
Box 11: Distributions received from an employer’s deferred compensation plan.
Box 12: Additional compensation details, such as 401(k) contributions (various IRS codes apply).
Box 13: Indicates special tax treatments, including retirement plan participation or exempt wages.

State and Local Tax Information

Boxes 16-19: Show state and local taxable wages, tax withholdings, and other regional tax details.