Form W-2

Form W-2, the Wage and Tax Statement, is the yearly form employers give each employee showing what they were paid and what taxes were withheld. Employers must send it by January 31 for the year before, and it is what you use to file your return.

Box 1 is federal taxable wages, Box 2 is federal income tax withheld, Boxes 3 and 4 are Social Security wages and tax, Boxes 5 and 6 are Medicare wages and tax, and Boxes 15 to 20 cover state and local tax. Box 12 codes report items such as 401(k) deferrals and employer HSA contributions.

Box 1 is often lower than your salary because pre-tax deductions come out first. Do not confuse it with Form W-4, which you give your employer. Your last pay stub of the year should match it closely.