Understanding Your W-2 Form

By January 31st, your employer must provide your W-2. This form details your wages and the taxes withheld over the past year. Here is exactly how to read it.

Sample W-2 Form layout

Key Boxes Explained

Box 1: Wages, tips, other comp.

This is your total taxable income. It goes on Line 1z of your 1040. Note: This number is often lower than your salary because pre-tax deductions (like 401(k) contributions) are subtracted first.

Box 2: Federal income tax withheld

This is what you've already paid the IRS. It goes on Line 25a of your 1040. If this number is larger than your total tax, you get a refund.

Box 12: Codes

This box can contain several codes. The most common is Code D, which shows your 401(k) contributions. These are already excluded from Box 1, so you usually don't need to enter them on your 1040 unless claiming the Saver's Credit.

FAQ

What if I haven't received my W-2?
Employers have until January 31st to mail it. If you haven't received it by mid-February, contact your employer. If they don't respond, you can call the IRS or use Form 4852.