What is a W-2?

By Reba Donaldson · Last reviewed: April 2026 · Educational guidance, not tax advice

If your employer paid you wages this year, they sent you a W-2. Here's what it means and what to do with it.

A W-2 lands in mailboxes — paper or digital — every January. It's a one-page form full of boxes and numbers, and most people open it with the same question: am I getting a refund or do I owe? This page answers what each box on the form means in plain English. If you'd rather skip the reading and just get your answer, the free W-2 Predictor takes about two minutes.

The short answer

A W-2 is a form your employer sends you each year. It shows two main things: how much they paid you, and how much tax they took out for the IRS.

You get one W-2 for each job. If you worked two jobs in 2026, you'll get two W-2s — one from each employer.

You use the numbers on the W-2 to file your federal and state tax returns. The IRS gets a copy too, so they already know what you earned. Filing your taxes is mostly about confirming the numbers and seeing whether you over-paid (refund) or under-paid (owe).

When does my W-2 arrive?

The law says employers must send out W-2s by January 31. Most arrive earlier than that — sometimes by mid-January.

How it shows up depends on your employer:

• Online portal. Most companies post your W-2 in the same site where you check your pay stubs (Workday, ADP, Gusto, Paychex, etc.). Look there first — it's usually ready before the paper copy arrives.
• Mail. If you don't have an online portal, your W-2 comes by regular mail to your address on file.
• Email link. Some smaller employers send a secure link by email. They should never email the actual form as an attachment — that's not safe.

If it's not in your hands by mid-February, something is off. See our guide to a missing or wrong W-2 for what to do.

What's on a W-2 (the boxes that matter)

A W-2 has a lot of boxes. Most of them are routine. Here are the ones you'll actually look at:

Box 1 — Wages, tips, other compensation

The big number near the top. This is what the IRS treats as your taxable pay for the year. It's smaller than your gross pay if you put money into a 401(k) or paid for pre-tax health insurance — see the next section for why.

Box 2 — Federal income tax withheld

What your employer already sent to the IRS for you out of every paycheck. If this is more than what you actually owe, you get a refund. If it's less, you owe.

Box 3 — Social Security wages

Wages that count toward Social Security tax. This is often a different number from Box 1 — Social Security has a yearly cap (about $168,600 in 2025; the 2026 number is similar), and 401(k) contributions don't reduce Social Security wages even though they reduce Box 1.

Box 4 — Social Security tax withheld

What you paid into Social Security this year. It's 6.2% of Box 3.

Box 5 — Medicare wages

Wages that count toward Medicare tax. There's no cap on this one, so for high earners it can be larger than Box 1 (because 401(k) contributions don't reduce it).

Box 6 — Medicare tax withheld

What you paid into Medicare this year. It's 1.45% of Box 5 — plus an extra 0.9% on wages above $200,000 if you're a high earner.

Box 12 — Codes

This is where employers report things like 401(k) contributions, the cost of your health insurance, and other items the IRS wants to track. Each entry has a letter code (D, DD, W, etc.) and a dollar amount. Most don't change your taxes — they're informational. We have a full guide to Box 12 codes if you're trying to decode a specific letter.

Boxes 15–20 — State and local taxes

Your state wages, state tax withheld, and (in some places) local tax withheld. You'll use these to file your state return.

Box 1 vs. your gross pay

This is the part that confuses almost everyone the first time. Box 1 is not what your job pays you in total. It's what your job pays you minus the things you put aside before tax.

Here's a worked example.

Imagine you earned $58,000 gross at your job. Through the year you put $5,000 into your 401(k) and paid $3,000 toward pre-tax health insurance. Your Box 1 won't say $58,000. It'll say $50,000 — your gross pay minus those two pre-tax amounts.

That's actually good news. Lower Box 1 means less tax. Your 401(k) money still belongs to you (it's just sitting in a retirement account), and your health insurance was paid before tax was calculated, which saves you money.

If you ever look at your W-2 and panic that the number is too low — check your last pay stub of the year. The "year-to-date" gross will match what you think you earned, and the difference between that and Box 1 is the pre-tax stuff.

What do I do with my W-2?

Three things, in order:

1. Check that the numbers look right. Box 1 should match what you earned (minus pre-tax contributions). Your name and Social Security number should be correct. If something's off, see our wrong W-2 guide.
2. Find out if you're getting a refund or you'll owe. This is the question most people actually want answered. Our free W-2 Predictor uses your Box 1 and Box 2 (plus a few quick follow-ups) to tell you, in under two minutes.
3. File your taxes. Use a tax program (TurboTax, FreeTaxUSA, H&R Block, etc.) or a tax pro. The W-2 is the main input.

Predict my refund or owe →

Common questions

Next step

You have your W-2 in hand. The next thing most people want to know is whether they're getting a refund. Our predictor takes about two minutes and uses only the numbers off your W-2.

Run the W-2 Predictor →