How to Read Your W-2: Every Box Explained (2026 Form, Including New Tip & Overtime Codes)
Your W-2 shows what you earned and how much tax was withheld during the year. Here’s what every box means in plain English, based on the IRS’s 2026 Instructions for Forms W-2 and W-3.
Boxes a–f: Who You Are and Who Paid You
| Box a | Your Social Security number (may show only the last four digits on your copy) |
| Box b | Your employer’s EIN (employer identification number) |
| Box c | Your employer’s name and address |
| Box d | Control number, used internally by your employer (may be blank) |
| Box e–f | Your name and address |
Check these first. If your name or SSN is wrong, ask your employer for a corrected W-2 (Form W-2c).
Boxes 1–8: Wages and Taxes
| Box 1 | Wages, tips and other pay subject to federal income tax. This is often lower than your gross pay because pre-tax deductions like 401(k) contributions and health premiums are taken out first. |
| Box 2 | Federal income tax withheld from your paychecks |
| Box 3 | Wages subject to Social Security tax (up to the yearly limit) |
| Box 4 | Social Security tax withheld (6.2% of box 3) |
| Box 5 | Wages and tips subject to Medicare tax (no limit) |
| Box 6 | Medicare tax withheld (1.45%, plus an extra 0.9% on high wages) |
| Box 7 | Tips you reported to your employer that are subject to Social Security tax |
| Box 8 | Allocated tips, meaning tips your employer assigned to you (not included in box 1) |
Why are boxes 1, 3 and 5 different? Some deductions lower one type of taxable wages but not others. For example, 401(k) contributions reduce box 1 but not boxes 3 and 5.
Boxes 9–11
- Box 9: not used for most employees
- Box 10: dependent care benefits (such as a dependent care FSA)
- Box 11: distributions from a nonqualified deferred compensation plan
Box 12: Codes
Box 12 uses letter codes with amounts. The most common are:
| D | 401(k) contributions you made |
| E | 403(b) contributions |
| AA / BB | Roth 401(k) / Roth 403(b) contributions |
| C | Taxable cost of group-term life insurance over $50,000 |
| W | Employer (and pre-tax employee) contributions to your HSA |
| DD | Cost of your employer health coverage (for information only, not taxable) |
| TP (new for 2026) | Total cash tips you reported to your employer |
| TT (new for 2026) | Total qualified overtime pay. The IRS says you can deduct up to $12,500 ($25,000 married filing jointly). |
| TA (new for 2026) | Employer contributions to a Trump account for you or a dependent |
Box 13: Checkboxes
- Statutory employee: a special category of worker (rare)
- Retirement plan: checked if you were in a workplace retirement plan. This can affect whether your IRA contributions are deductible.
- Third-party sick pay: sick pay paid by an insurer or other third party
Box 14a and 14b (Changed for 2026)
- Box 14a – Other: extra information from your employer, such as union dues or state disability insurance
- Box 14b – Treasury Tipped Occupation Code: new for 2026. It shows the code for a job where tips are customary, which relates to the new tips deduction.
Boxes 15–20: State and Local Taxes
| Box 15 | State and your employer’s state ID number |
| Box 16 | State wages, tips, etc. |
| Box 17 | State income tax withheld |
| Box 18 | Local wages, tips, etc. |
| Box 19 | Local income tax withheld |
| Box 20 | Name of the locality (city, county or school district) |
Frequently Asked Questions
Why is box 1 lower than my total pay?
Pre-tax deductions, like 401(k) contributions, health, dental and vision premiums, and FSA or HSA contributions, are taken out before federal income tax, so they’re not in box 1.
Where do I see my tips and overtime for the new deductions?
On 2026 W-2s, look in box 12 for code TP (tips) and code TT (qualified overtime). Box 14b shows the tipped occupation code.
What if something on my W-2 is wrong?
Ask your employer for a corrected W-2 (Form W-2c). If they don’t fix it by the end of February, call the IRS at 800-829-1040.
Conclusion
Boxes 1–6 show your wages and the main taxes withheld, box 12 lists benefits and new tip and overtime amounts, and boxes 15–20 cover state and local taxes. Check your name and SSN first, and ask your employer to fix any errors before you file.
Related: When will I get my W-2? · Missing W-2 help
LoginSteps is an independent guide, not a tax advisor. For advice about your own situation, talk to a tax professional or see IRS.gov. Read our disclaimer.
