How to Read Your W-2
Every box on your W-2 explained in plain English.
By the Easy Guides Editorial Team
The 5 boxes that actually matter
Most people only need to focus on five boxes when filing their taxes: Box 1 (taxable wages), Box 2 (federal tax withheld), Box 3 (Social Security wages), Box 4 (Social Security tax), and Box 12 (special codes). The rest are either informational or apply only in specific situations.
Below is every box on the W-2, in order, with a plain-English explanation of what it means.
BOX aEmployee SSN
Your Social Security number. Verify this matches your card exactly. An error here can delay your refund.
BOX bEmployer EIN
Your employer's federal Employer Identification Number.
BOX cEmployer name & address
The legal name and address of your employer.
BOX dControl number
Optional internal tracking number used by your employer or payroll provider. May be blank.
BOX e/fEmployee name & address
Your full name and current address as your employer has it on file.
BOX 1Wages, tips, other compensation
Your total taxable wages for federal income tax purposes. This is usually less than your gross pay because pre-tax deductions (401k, health insurance) reduce it.
BOX 2Federal income tax withheld
The total amount of federal income tax your employer withheld during the year. This is what you'd compare to your tax liability when you file.
BOX 3Social Security wages
Wages subject to Social Security tax. Usually higher than Box 1 because pre-tax retirement contributions don't reduce SS wages. Capped at $176,100 for 2025 / $184,500 for 2026.
Where this comes from: SSA, 2026 COLA fact sheet (wage base set under 42 U.S.C. §430), checked 2026-08-01 · Social Security Act §230 (42 U.S.C. §430); incorporated by IRC §3121(a)(1) for wages and IRC §1402(b) for self-employment income.
BOX 4Social Security tax withheld
Box 3 × 6.2%. Should be exactly that, if not, contact HR for clarification.
BOX 5Medicare wages and tips
Wages subject to Medicare tax. No cap on this one, applies to all earnings.
BOX 6Medicare tax withheld
Box 5 × 1.45% (plus an extra 0.9% on wages over $200,000).
Where this comes from: set by statute, not adjusted annually · IRC §3101(b)(2) (wages); IRC §1401(b)(2) (self-employment income).
BOX 7Social Security tips
Tips you reported to your employer that are subject to Social Security tax. Most people see $0 here.
BOX 8Allocated tips
Tips your employer assigned to you (separate from tips you reported). Mainly applies to restaurant workers.
BOX 10Dependent care benefits
Pre-tax money paid into a dependent care FSA. Usually for childcare expenses.
BOX 11Nonqualified plans
Distributions from a non-qualified deferred compensation plan. Most employees see $0.
BOX 12Various codes
Special codes for retirement contributions, health insurance, HSA, and other items. Each code has a specific meaning. See our Box 12 codes guide for the full list.
BOX 13Checkboxes
Three boxes: Statutory employee (rare), Retirement plan (you participated in a retirement plan), Third-party sick pay (you received sick pay through insurance).
BOX 14Other
Catch-all box for items that don't fit elsewhere, union dues, after-tax benefits, certain state-required items. Varies by employer.
BOX 15-20State and local taxes
State name, state ID, state wages, state tax withheld, local wages, local tax withheld, and locality name. Used for state and local tax filings.
Common red flags to check
- SSN mismatch, must match your Social Security card exactly
- Box 1 doesn't match your final pay stub YTD wages, could indicate pre-tax deductions or an error
- Box 4 doesn't equal Box 3 × 6.2%, possible withholding error
- Wrong employer info, name or EIN errors can cause IRS matching issues
If you find an error, request a corrected W-2 (W-2c) from your employer immediately. Don't file with the wrong info.
Common questions
How do I read my W-2?
Start with box 1, your taxable wages, and box 2, the federal tax already withheld. Boxes 3 through 6 cover Social Security and Medicare, box 12 lists coded benefits, and boxes 15 through 20 hold state and local amounts.
Why is box 1 less than my salary?
Pre-tax deductions come out first. Traditional 401(k) contributions, health insurance premiums, and HSA money all reduce box 1. That gap is usually a good sign, not a mistake.
Which W-2 box shows my refund?
None of them. Box 2 shows tax already withheld, but your refund is that amount minus your actual tax for the year, which depends on your whole return.