W-2 Box Guide — Every Box Explained

Box 1 — Wages, tips, other compensation

Your taxable federal wages for the year — gross pay minus pre-tax deductions like traditional 401(k), Section 125 cafeteria plan contributions, and pre-tax HSA.

Box 2 — Federal income tax withheld

Total federal income tax your employer withheld from your paychecks during the year, based on your Form W-4 elections.

Box 3 — Social security wages

Your wages subject to Social Security tax, capped at the annual wage base. Differs from Box 1 because traditional 401(k) deferrals are not excluded.

Box 4 — Social security tax withheld

The Social Security tax your employer withheld — exactly 6.2% of Box 3 (plus Box 7 tips), capped at 6.2% of the annual wage base.

Box 5 — Medicare wages and tips

Your wages subject to Medicare tax. Unlike Social Security, there is no wage base cap — Box 5 can exceed Box 3 on high salaries.

Box 6 — Medicare tax withheld

1.45% of Box 5, plus 0.9% Additional Medicare Tax on the portion of Box 5 above $200,000 at any single employer.

Box 10 — Dependent care benefits

Total dependent care benefits your employer paid (including through a Section 129 dependent care FSA). Up to $5,000 MFJ can be excluded from Box 1.

Box 11 — Nonqualified plans

Distributions from a nonqualified deferred compensation plan (Section 409A), or certain amounts included in Box 1 from a prior year's elective deferral.

Box 12 — Codes (401(k), HSA, health coverage, ISO, and more)

Up to four labeled amounts (12a–12d) using IRS codes. Common codes: D (401(k) elective deferral), DD (employer health coverage cost), W (employer + employee HSA contributions), AA (Roth 401(k)).

Box 12 Code D — Elective deferrals to a 401(k) plan

Your traditional (pre-tax) 401(k) elective deferrals. Reduces Box 1 dollar-for-dollar, up to the annual §402(g) elective deferral limit (higher with age-50 catch-up and SECURE 2.0 ages-60–63 super-catch-up).

Box 12 Code DD — Cost of employer-sponsored health coverage

The total cost (employer + employee share) of your employer-sponsored group health coverage. Informational only — does not affect your tax.

Box 12 Code E — Elective deferrals to a 403(b) plan

Your traditional (pre-tax) 403(b) elective deferrals. Reduces Box 1 up to the annual §402(g) limit, with a special 15-year catch-up for long-tenured employees of certain nonprofits.

Box 12 Code W — Employer and employee HSA contributions

Total Health Savings Account contributions — both employer and employee (via pre-tax payroll). Capped at the §223 annual HSA limit for your HDHP coverage tier, plus the $1,000 age-55+ catch-up under §223(b)(3)(B)(ii).

Box 12 Code AA — Roth 401(k) contributions

Your designated Roth 401(k) contributions. Already included in Box 1 (taxed now), but qualified distributions in retirement are tax-free.

Box 12 Code BB — Roth 403(b) contributions

Your designated Roth 403(b) contributions. Already included in Box 1 (taxed now); qualified distributions are tax-free.

Box 13 — Statutory employee · Retirement plan · Third-party sick pay

Three checkboxes (not dollar amounts): Statutory employee, Retirement plan coverage, Third-party sick pay. Each has separate tax-return implications.

Box 14 — Other (state disability, union dues, RRTA, NYC SDI, and more)

Free-form 'Other' box used by employers for items not covered elsewhere — state disability insurance, union dues, uniform allowances, educational assistance above $5,250, etc.

Box 15 — State · Employer's state ID number

The state abbreviation and your employer's state tax identification number. Required for every state in which state income tax was withheld.