What Is a W-2 Form?
The W-2 is one of the most important tax documents you'll receive each year. Every employer is legally required to send a W-2 to each employee who was paid wages during the year, plus file copies with the IRS and Social Security Administration.
If you have multiple jobs, you receive a W-2 from each employer. Freelancers and independent contractors receive 1099 forms instead of W-2s.
Employers must mail or electronically send W-2s by January 31st each year for the previous tax year. If you haven't received it by mid-February, contact your HR department.
W-2 Box-by-Box Explanation
| Box | Label | What It Means |
|---|---|---|
| 1 | Wages, tips, other compensation | Your total taxable wages for federal income tax purposes (after pre-tax deductions like 401k, HSA) |
| 2 | Federal income tax withheld | Total federal income tax withheld from all paychecks during the year |
| 3 | Social Security wages | Wages subject to Social Security tax (may differ from Box 1 due to different exemptions) |
| 4 | Social Security tax withheld | 6.2% of Box 3 wages (max $10,453 in 2024) |
| 5 | Medicare wages and tips | Wages subject to Medicare tax (usually equals Box 3 but has no wage cap) |
| 6 | Medicare tax withheld | 1.45% of Box 5 wages |
| 7 | Social Security tips | Tips you reported to your employer for Social Security purposes |
| 10 | Dependent care benefits | Employer-provided dependent care assistance (FSA) |
| 12 | Codes (A-FF) | Various benefits and deferrals (see codes below) |
| 13 | Checkboxes | Statutory employee, retirement plan participation, third-party sick pay |
| 15 | State/Employer's state ID | Your state and employer's state tax ID number |
| 16 | State wages, tips, etc. | Total wages subject to state income tax |
| 17 | State income tax | Total state income tax withheld |
Box 12 Codes Explained
| Code | Meaning |
|---|---|
| D | Elective 401(k) deferrals (traditional, pre-tax) |
| E | Elective 403(b) salary deferrals |
| W | Employer contributions to your Health Savings Account (HSA) |
| AA | Designated Roth 401(k) contributions |
| DD | Cost of employer-sponsored health coverage (informational only — not taxable) |
| EE | Designated Roth 403(b) contributions |
| G | Elective deferrals to 457(b) plan |
W-2 vs. 1099: What's the Difference?
- Employer withholds taxes from each paycheck
- Employer pays half of FICA taxes (7.65%)
- Eligible for employee benefits (health insurance, 401k, PTO)
- Receive W-2 by January 31st
- More tax predictability — just file and verify withholding was correct
- No taxes withheld — you pay quarterly estimated taxes
- Pay full self-employment tax (15.3% FICA)
- No employer benefits — you provide your own
- Receive 1099-NEC if paid $600+ from a client
- More deductions available (home office, equipment, business expenses)
W-2 FAQ
Why is Box 1 less than my actual salary?
Pre-tax deductions reduce Box 1. If you contribute to a traditional 401(k), HSA, or pay health insurance premiums pre-tax, those amounts are subtracted from Box 1 because they're not subject to federal income tax.
What if my W-2 is wrong?
Contact your employer's HR or payroll department immediately. They can issue a corrected W-2 (Form W-2c). Don't file your taxes with incorrect information.
What if I don't receive my W-2?
If you don't receive your W-2 by mid-February, contact your employer. If that doesn't resolve it, you can call the IRS at 1-800-829-1040. As a last resort, you can file with Form 4852 (substitute W-2).