What Is Form W-2 and How Does It Work?

What Is Form W-2 and

How Does It Work?

Here’s a detailed look at

each box of Form W-2

Box aReports your Social Security number. Ensure this is correct. An incorrect SSN can

delay the processing of your tax return.

Box bYour employer’s EIN (Employer Identification Number) is reported in box b. An EIN is

a nine-digit number assigned to your employer by the IRS and used to identify the

tax accounts of employers.

Box cReports the legal address of your employer. This may or may not be the actual

address of where you work, depending if your employer has multiple offices with a

corporate site.

Box dReports the control number used by your employer’s payroll department. This may

or may not be blank.

Box e and fYour legal name, as it reads on your Social Security card, appears in box e and your

mailing address is reported in box f. Double-check both of these are correct. If that

information is incorrect, it could delay the processing of your return.

Box 1Shows your total taxable wages, tips, prizes and other compensation for the year,

minus certain elective deferrals, such as 401(k) plans, pretax benefits and payroll

deductions.

Box 2Reports the total federal income tax withheld from your pay during the year. This

amount is based on the number of exemptions claimed on your Form W-4. If you’d

rather keep more money in your paycheck each week, you’ll want to adjust your

Form W-4 for the next year.

Box 3Shows your total wages that are taxed for Social Security.

Box 4The total Social Security taxes withheld from your pay for the year. Unlike federal

income taxes, Social Security taxes are calculated based on a flat rate of 6.2%.

Box 5This indicates all your wages and tips that are taxed for Medicaid.

Box 6The total amount of Medicare tax withheld from your pay for the year. Much like

Social Security taxes, Medicare taxes are also figured on a flat rate, which is 1.45%.

Box 7This shows any tips that you reported.

Box 8This shows any allocated tips that your employer has figured attributable to you.

These are considered as income.

Box 9This is blank, as this requirement has expired. It’s currently in the process of being

removed from the form W-2.

Box 10Reports the total amount deducted from your wages for dependent care assistance

programs. It may also include contributions made by your employer for dependent

care on your behalf.

Box 11Reports the total amount distributed to you from your employer’s non-qualified

deferred compensation plan.

Box 13Your employer will check the applicable box that pertains to you as an employee.

Box 14Reports anything that doesn’t have a specific box anywhere else on Form W-2 in

box 14.

Box 15Includes your employer’s state and state tax identification number.

Box 16Indicates the total amount of taxable wages for state tax purposes, if you are subject

to state income taxes.

Box 17Shows the total amount of state taxes withheld from your wages for the year.

Box 18If you are subject to local, city or other state income taxes, box 18 reports those

wages.

Box 19Reports the total amount withheld from your wages for local, city or other state

income taxes.

Box 20Is the legal name of the local, city or other state tax being reported in box 19.

The full anatomy of Form W-2.Learn more at blog.taxact.com/form-w-2.