
A: Start with your wages and the taxes withheld from your paychecks. These are among the most important numbers used to prepare your tax return.
• Box 1 – Wages: Shows your annual wages subject to federal income tax. Check that the amount appears reasonable based on your earnings for the year. It may differ from your total salary because certain benefits and deductions can reduce taxable wages.
• Box 2 – Federal income tax withheld: Shows how much federal income tax your employer withheld during the year. This amount generally counts toward the federal income tax you owe when filing your return.
• Boxes 3–6 – Social Security and Medicare: Show the wages subject to these taxes and the amounts withheld. These are separate from federal income tax and generally help fund Social Security and Medicare benefits.
• Boxes 16–17 – State wages and income tax withheld: Show your state taxable wages and state income tax withheld, where applicable. These amounts help determine your state income tax liability.
Bottom Line: Your W-2 is more than a record of what you earned. It’s also a record of taxes you’ve already paid through your employer. Review your wages and withholding amounts before filing, and contact your employer if something appears incorrect.














