How to Read Your W-2 Like a Pro

Your W-2 form is the document your employer sends each year showing how much you earned and how much tax was withheld. You’ll need it to file your federal and state tax returns.

Here’s what the main boxes mean:

• Box 1 – Wages, tips, and other compensation: The total taxable income you earned from that employer.

• Box 2 – Federal income tax withheld: The amount your employer sent to the IRS on your behalf.

• Box 3 & 4 – Social Security wages and tax withheld: Earnings subject to Social Security tax and the amount withheld.

• Box 5 & 6 – Medicare wages and tax withheld: Earnings subject to Medicare tax and the amount withheld.

• Box 12: Special codes for items like retirement contributions or employer-provided benefits.

• Box 15–20: State and local tax information.

Pro Tip: Always compare your W-2 to your last pay stub to make sure the numbers match. If something looks wrong, contact your employer right away—fixing it before filing saves headaches later.