2026 Guide

What Is a W-2? How to Read One

W-2 means the annual Wage and Tax Statement your employer files to report your pay and the taxes withheld. Here is a plain-English guide to the document and its commonly used fields.

What is a W-2?

A W-2, officially the Wage and Tax Statement, is the form your employer sends every year showing how much you earned and how much tax was withheld from your paychecks. Employers must send it by January 31 for the prior tax year, and you use it to file your federal and state income tax returns. You get a separate W-2 from every employer you worked for during the year.

Who sends a W-2, and when?

An employer generally files a W-2 when it paid at least $600 in wages or withheld income, Social Security, or Medicare tax. Copies go to you and the Social Security Administration, which shares wage data with the IRS; state or local copies may also apply. Expect the employee copy by January 31.

How to read a W-2, field by field

Boxes a–f (identifiers)

Your SSN, the employer’s EIN, and both names and addresses. Box d is an optional payroll control number.

Box 1 — Wages, tips, other compensation

Your taxable wages for federal income tax. This is often lower than your gross pay because pre-tax 401(k) and health-insurance contributions are removed.

Box 2 — Federal income tax withheld

The total federal income tax your employer already sent to the IRS on your behalf.

Boxes 3 & 4 — Social Security wages / tax

Wages subject to Social Security (capped at the annual wage base) and the 6.2% tax withheld on them.

Boxes 5 & 6 — Medicare wages / tax

Wages subject to Medicare (no cap) and the 1.45% tax withheld, plus any additional 0.9% on high earners.

Box 12 — Coded amounts

Letter codes for specific items: D = 401(k) contributions, DD = cost of employer health coverage, W = HSA contributions, and more.

Box 13 — Checkboxes

Flags for statutory employee, participation in a retirement plan, and third-party sick pay.

Boxes 15–17 — State

The state, the employer’s state ID number, state wages, and state income tax withheld. A W-2 can list several states.

Boxes 18–20 — Local

Local wages, local income tax, and the locality name for city or county taxes.

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What to double-check

⚠Box 1 is smaller than Boxes 3 and 5 whenever you have pre-tax deductions like a 401(k) — that is normal, not an error.
⚠If you worked in multiple states, you may see repeated Boxes 15–20; each state block is separate.
⚠A "W-2c" is a corrected W-2 issued to fix a mistake on an earlier one.

Frequently asked questions

When should I receive my W-2?

Employers must furnish W-2s by January 31. If you have not received it by mid-February, contact your employer or payroll department.

Why is Box 1 different from my salary?

Box 1 shows federal taxable wages. Pre-tax contributions (401(k), health premiums, HSA) reduce it below your gross salary, which is why the numbers differ.

What is the difference between a W-2 and a 1099?

A W-2 reports wages for employees with taxes withheld; a 1099-NEC reports payments to independent contractors with no withholding.