Understanding Your W-2 Form

A complete guide to reading your W-2 form. Learn what each box means, how wages and withholdings are reported, and how to use your W-2 to file your tax return.

Key W-2 Boxes Explained

• Box 1 – Wages, tips, other compensation: Your total taxable federal income.
• Box 2 – Federal income tax withheld: Total federal tax your employer withheld.
• Box 3 – Social Security wages: Earnings subject to Social Security tax (capped at $176,100 in 2025).
• Box 4 – Social Security tax withheld: 6.2% of Box 3.
• Box 5 – Medicare wages: Earnings subject to Medicare tax (no cap).
• Box 6 – Medicare tax withheld: 1.45% of Box 5 (plus 0.9% additional above $200,000).
• Box 12 – Codes: 401(k) contributions (code D), HSA contributions (code W), and more.