Understanding Your W-2

Boxes a through f
Boxes 1 through 20
  - Box 12

Boxes a through f

Boxes a through f contain personal information about you and your employer, including your social security number, name, and address, as well as your employer’s identification number, name, and address. 

Boxes 1 through 20

The numbered boxes on the W-2 record financial information for the entire calendar year.

• Box 1: “Wages, tips, other compensation.” This box reports total federal taxable income. This number includes wages, salary, tips already reported, bonuses, taxable benefits, and other taxable compensation. This box does not include pre-tax retirement and pre-tax benefit deductions (i.e., contributions to a 401(k) plan or health insurance).

• Box 2: “Federal income tax withheld.” This box reports the total federal income tax withheld from your pay, based on your W-4. This represents the amount of federal taxes you have paid throughout the year.

• Box 3: “Social security wages.” This box reports the total amount of wages subject to Social Security tax.

• Box 4: “Social security tax withheld.” This box reports the total amount of Social Security taxes withheld from your pay.

• Box 5: “Medicare wages and tips.” This box reports the total amount of wages subject to Medicare tax.

• Box 6: “Medicare tax withheld.” This box reports the total amount of Medicare taxes withheld from your pay.

• Box 7: “Social security tips.” This box shows any reported tip income subject to Social Security tax. If you did not report any tips to your employer, this box will be empty. This amount is already included in Box 1.

• Box 8: “Allocated tips.” This box reports any tip income allocated to you by your employer. This amount is not included in the wages reported in Boxes 1, 3, 5, or 7. For information on how to report tips on your tax return, see your Form 1040 instructions.

• Box 9: “Advance EIC Payments.” This box is no longer used and should be blank.

• Box 10: “Dependent care benefits.” This box reports a pre-tax deduction for dependent care. This deduction is already reflected in Box 1.

• Box 11: “Nonqualified plans.” This box reports the total amount distributed from your employer’s non-qualified deferred compensation or non-government Section 457 pension plan. This amount is already included in Box 1.

• Box 12: This box provides additional information regarding your income.

  • Code A: Uncollected Social Security or Railroad Retirement Tax Act (RRTA) tax on tips.

  • Code B: Uncollected Medicare tax on tips.

  • Code C: Taxable cost of group-term life insurance over $50,000. This amount is already included in Boxes 1, 3, and 5 as part of your taxable wages.

  • Code D: Nontaxable elective salary deferrals to a 401(k) or SIMPLE 401(k) retirement plan.

  • Code E: Nontaxable elective salary deferrals to a 403(b) retirement plan.

  • Code F: Nontaxable elective salary deferrals to a 408(k)(6) SEP retirement plan.

  • Code G: Nontaxable elective salary deferrals and non-elective employer contributions to a 457(b) retirement plan.

  • Code H: Nontaxable elective salary deferrals to a 501(c)(18)(D) tax-exempt plan. This amount is included in Box 1.

  • Code J: Nontaxable sick pay.

  • Code K: 20% excise tax on excess “golden parachute” payments.

  • Code L: Non-taxable reimbursements for employee business expenses.

  • Code M: Uncollected Social Security or RRTA tax on the taxable cost of group-term life insurance over $50,000 for former employees.

  • Code N: Uncollected Medicare tax on the taxable cost of group-term life insurance over $50,000 for former employees.

  • Code P: Nontaxable reimbursements for employee moving expenses paid directly to a member of the U.S. Armed Forces.

  • Code Q: Nontaxable combat pay for military personnel.

  • Code R: Employer contributions to an Archer Medical Savings Account (MSA).

  • Code S: Nontaxable salary deferral to a 408(p) SIMPLE retirement plan.

  • Code T: Employer-paid adoption benefits. This amount is not included in Box 1.

  • Code V: Income from exercise of nonstatutory stock option(s). This amount is included in Boxes 1, 3, and 5.

  • Code W: Employer and employee contributions to a Health Savings Account (HSA).

  • Code Y: Deferrals under Section 409A nonqualified deferred compensation plan.

  • Code Z: Income under a nonqualified deferred compensation plan that fails to satisfy section 409A.

  • Code AA: Designated Roth contributions under a section 401(k) plan. This amount is included in Box 1.

  • Code BB: Designated Roth contributions under a section 403(b) plan. This amount is included in Box 1.

  • Code DD: Nontaxable cost of employer-sponsored health coverage.

  • Code EE: Designated Roth contributions under a governmental section 457(b) plan. This amount is included in Box 1.

  • Code FF: Permitted benefits under a qualified small employer health reimbursement arrangement.

  • Code GG: Income from qualified equity grants under section 83(i).

  • Code HH: Aggregate deferrals under section 83(i) elections as of the close of the calendar year.

  • Code II: Medicaid waiver payments excluded from gross income under Notice 2014-7.

• Box 13: This box has three checkboxes.

  • Statutory employee: Your earnings are subject to Social Security and Medicare taxes but not federal income tax withholding. If this applies to you, a zero or a blank amount will be in Box 2.

  • Retirement plan: You were an active participant in your employer’s retirement plan during the year. This may be a 401(k) plan, 403(b) plan, simplified employee pension (SEP) plan, SIMPLE retirement plan, or another type of pension plan.

  • Third-party sick pay: You received sick pay under your employer’s third-party insurance provider instead of receiving sick pay directly from your employer as part of your regular paycheck.

• Box 14: “Other.” Employers may also use this box for any additional information. Examples include state disability insurance taxes withheld, union dues, uniform payments, health insurance premiums deducted, nontaxable income, educational assistance payments, or a minister's parsonage allowance and utilities. If you are confused about anything in this box, reach out to your employer for more information.

• Box 15 through 20: State and local income tax information (not applicable to Forms W-2AS, W-2CM, W-2GU, or W-2VI).