Form W-2
The annual statement of wages and taxes withheld that your employer sends you and the IRS.
Payroll glossary · Updated 2026-08-29
Employers must furnish a W-2 by 31 January for the preceding year. Box 1 is wages after pre-tax deductions including retirement deferrals. Box 3 is Social Security wages, reduced by Section 125 benefits only and capped at the wage base. Box 5 is Medicare wages, reduced the same way but uncapped.
The difference between Box 3 and Box 1 is essentially your traditional retirement contributions for the year, which makes it a quick check that your deferrals were processed correctly.
Box 12 carries coded amounts: D for 401(k), W for HSA, DD for the cost of employer health coverage. Box 14 is a free-text field where employers report state disability, union dues and, from 2026, qualified tips and overtime.
Where you will see it
Employers must furnish the W-2 by 31 January. You receive multiple copies: one for your federal return, one for state and local filing, and one for your records.
What it is often confused with
If you worked in more than one state during the year you should receive a W-2 with multiple state lines, or occasionally separate forms. Check that the wages allocated to each state look right before filing — a common error after a mid-year move is that all wages remain allocated to the old state, which produces a refund from one and a bill from the other.
2026 reference figures
The numbers below are the 2026 amounts that most often come up alongside this term. They change every year, so check the tax year before relying on them.
| 2026 figure | Amount |
|---|---|
| Social Security rate and wage base | 6.2% up to $184,500 |
| Medicare rate | 1.45%, no cap |
| Additional Medicare Tax | 0.9% above $200,000 of wages |
| Standard deduction, single | $16,100 |
| Standard deduction, married filing jointly | $32,200 |
| 401(k) elective deferral limit | $24,500 |
| HSA limit, self-only | $4,400 |
| Health FSA limit | $3,400 |
| Supplemental wage withholding rate | 22% up to $1,000,000 |
| W-4 Step 3 credit per qualifying child | $2,200 |
Common questions
Why is Box 1 lower than my salary?
Pre-tax deductions reduce it.
What if my W-2 is wrong?
Ask your employer for a corrected W-2c before you file.