Your W-2 is the most important tax document most employees receive. It shows exactly how much you earned and how much was withheld from your paycheck for federal taxes, state taxes, Social Security, and Medicare. Understanding each box helps you file accurately and spot errors before they cost you.
When You Get It and What to Do First
Employers must send W-2s by January 31. If yours has not arrived by mid-February, contact your HR or payroll department. Check that your name, address, and Social Security number are correct. Errors here can delay your refund or cause IRS notices.
The Key Boxes Explained
Box 1 — Wages, Tips, Other Compensation
Your total taxable federal wages for the year. This is not your gross pay — it excludes pre-tax benefits like 401(k) contributions and health insurance premiums.
Box 2 — Federal Income Tax Withheld
How much was taken out of your paychecks for federal income tax. Compare this to your actual tax liability when you file. If Box 2 is higher, you get a refund. If it is lower, you owe the difference.
Box 3 — Social Security Wages
Wages subject to Social Security tax. Can be higher than Box 1 because it includes some pre-tax deductions that are excluded from federal income tax (like health insurance) but still subject to FICA.
Box 4 — Social Security Tax Withheld
Should be 6.2% of Box 3, up to the annual Social Security wage base. For 2025, that was $176,100. If you had multiple employers and this box exceeds the correct amount, you can claim a credit on your return.
Box 5 — Medicare Wages and Tips
All wages subject to Medicare tax. No income cap, unlike Social Security.
Box 6 — Medicare Tax Withheld
Should be 1.45% of Box 5. Earners above $200,000 (single) or $250,000 (married) also pay an additional 0.9%.
Box 12 — Various Codes
Codes report specific types of compensation or deferrals. Common ones: Code D = 401(k) contributions; Code W = employer HSA contributions; Code DD = employer-sponsored health insurance cost (informational only, not taxable income).
Box 13 — Checkboxes
“Retirement plan” checked means you participated in an employer plan, which may limit your IRA deduction if your income is above certain thresholds.
Boxes 15–17 — State Tax Information
State, employer’s state ID number, state wages, and state income tax withheld. You will use these to file your state return.
What If Your W-2 Is Wrong?
Contact your employer to issue a corrected W-2 (called a W-2c). Do not file your return with incorrect information — it can trigger audits and penalties. If the employer does not respond, contact the IRS.
Bottom Line
Your W-2 summarizes a year of earnings in one page. Read it carefully before filing, verify the numbers match your final pay stub, and keep a copy for at least three years.