Understanding Your W-2
Numbered boxes appear on Form W-2 as well. These record your financial information.
Code A |
Uncollected Social Security or RRTA tax on tips. Include this amount as part of your total tax on Form 1040. |
Code B |
Uncollected Medicare tax on tips. Include this amount as part of your total tax on Form 1040. |
Code C |
Taxable benefit of group term-life insurance over $50,000. This amount is already included as part of your taxable wages in Boxes 1, 3, and 5. |
Code D |
Non-taxable elective salary deferrals to a 401(k) or SIMPLE 401(k) retirement plan. |
Code E |
Non-taxable elective salary deferrals to a 403(b) retirement plan. |
Code F |
Non-taxable elective salary deferrals to a 408(k)(6) SEP retirement plan. |
Code G |
Non-taxable elective salary deferrals and non-elective employer contributions to a 457(b) retirement plan. |
Code H |
Non-taxable elective salary deferrals to a 501(c)(18)(D) tax-exempt plan. This amount is included in box 1 wages. See the Instructions for Form 1040 for how to deduct this amount. |
Code J |
Non-taxable sick pay. This amount is not included in taxable wages in Boxes 1, 3, or 5. |
Code K |
Excise tax (equal to 20%) on excess "golden parachute" payments. Include this amount as part of your total tax on Form 1040. |
Code L |
Non-taxable reimbursements for employee business expenses. |
Code M |
Uncollected Social Security or RRTA tax on taxable group term life insurance over $50,000 for former employees. Include this amount as part of your total tax on Form 1040. |
Code N |
Uncollected Medicare tax on taxable group term life insurance over $50,000 for former employees. Include this amount as part of your total tax on Form 1040. |
Code P |
Non-taxable reimbursements for employee moving expenses, if the amounts were paid directly to the employee. This amount may need to be used on Form 3903 (pdf) when calculating how much moving expenses to deduct |
Code Q |
Non-taxable combat pay. Some individuals may elect to include combat pay when calculating their Earned Income Credit. See Publication 3 for more details about the combat zone exclusion. |
Code R |
Employer contributions to an Archer Medical Savings Account. This amount should be reported on Form 8853 (pdf). |
Code S |
Non-taxable salary deferral to a 408(p) SIMPLE retirement plan. |
Code T |
Employer paid adoption benefits. This amount is not included in Box 1 wages. Use Form 8839 to calculate the taxable and non-taxable portion of these adoption benefits. |
Code V |
Income from the exercise of non-statutory stock options. This amount is already included as taxable income in Boxes 1, 3, and 5. However, you will still need to report separately the sale of any stock options on Schedule D and Form 8949. |
Code W |
Employer and employee contributions to a Health Savings Account. Report this amount on Form 8889. |
Code Y |
Salary deferrals under 409A non-qualified deferred compensation plan. |
Code Z |
Income received under 409A non-qualified deferred compensation plan. This amount is already included in taxable wages in Box 1. This amount is subject to an additional tax of 20% plus interest as part of your total tax on Form 1040. |
Code AA |
After-tax contributions to a Roth 401(k) retirement plan. This amount is included as part of your box 1 wages. |
Code BB |
After-tax contributions to a Roth 403(b) retirement plan. This amount is included as part of your box 1 wages. |
Code DD |
Reports the cost of non-taxable health insurance provided through your employer. |
Code EE |
After-tax contributions to a Roth 457(b) retirement plan offered by government employers. This amount is included as part of your box 1 wages. |
You're a statutory employee. This means that you report the wages from this W-2 — and any other W-2 forms you receive that are marked "statutory employee" — on Form 1040 Schedule C. Your wages are not subject to income tax withholding, so you should see a zero or blank amount in Box 2. They are subject to Social Security and Medicare tax withholdings, however, so Boxes 3 through 6 should be filled out. For a discussion of what constitutes a statutory employee and the rules that apply, see section 1 of Publication 15-A.
You participated in your employer's retirement plan during the tax year. This might be a 401(k) plan, a 403(b) plan, SEP-IRA, SIMPLE-IRA or another type of pension plan. Your ability to deduct contributions to a traditional IRA may be limited based on your income if you participate in a retirement plan, so check with an accountant or other tax professional if this box is checked.
You received third-party sick pay under your employer's third-party insurance policy instead of receiving sick pay directly from your employer as part of your regular paycheck. Sick pay is not included in your Box 1 wages, although sick pay is usually subject to Social Security and Medicare taxes. See Section 6 of Publication 15-A for a discussion of sick pay and third-party sick pay,