If you work for an employer, then your employer withholds income taxes from each of your paychecks. That’s because both federal and most state governments collect income tax year-round, not just on April 15. Every January or early February, you should receive a form W-2 from your employer that lists exactly how much money you made the previous year and how much of it went to taxes. Form W-2 is one of those forms that you, the taxpayer, don’t have to fill out; your employer provides all of the information on the form. In fact, your employer has to mail you, the IRS and your state the W-2 by January 31 or face a penalty.

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

2. Here’s a detailed look at
each box of Form W-2

3. Box a
Reports your Social Security number. Ensure this is correct. An incorrect SSN can
delay the processing of your tax return.

4. Box b
Your 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.

5. Box c
Reports 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.

6. Box d
Reports the control number used by your employer’s payroll department. This may
or may not be blank.

7. Box e and f
Your 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.

8. Box 1
Shows 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.

9. Box 2
Reports 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.

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

11. Box 4
The 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%.

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

13. Box 6
The 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%.

14. Box 7
This shows any tips that you reported.

15. Box 8
This shows any allocated tips that your employer has figured attributable to you.
These are considered as income.

16. Box 9
This is blank, as this requirement has expired. It’s currently in the process of being
removed from the form W-2.

17. Box 10
Reports 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.

18. Box 11
Reports the total amount distributed to you from your employer’s non-qualified
deferred compensation plan.

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

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

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

22. Box 16
Indicates the total amount of taxable wages for state tax purposes, if you are subject
to state income taxes.

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

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

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

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

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