How to Read a W2 Explained
By Tax&Facts | Published on | Read: 3 Mins
Overview
A W2 form summarizes your annual wages and taxes withheld. Understanding it is essential for accurate tax filing.
Key fields include:
Box 1 – Wages, tips, and other compensation: Total taxable income
Box 2 – Federal income tax withheld: Taxes taken from your paycheck
Box 12 – Other compensation or deductions: Includes retirement contributions or
special codes
Box 17 – State income tax: Taxes withheld for state filing
Our tool can help you quickly enter the values from your W2 to calculate your estimated taxes accurately.
For a detailed breakdown of every box and code on a W2, check out our full blog here:
👉 Read the complete W2
guide
FAQs
1. What is a W2 form?
A W2 is a statement your employer sends you each year summarizing your wages and taxes
withheld.
2. Which fields are most important for tax filing?
Box 1 (wages), Box 2 (federal tax withheld), Box 12 (other compensation), and Box 17 (state
tax) are key for most taxpayers.
3. What if information on my W2 is incorrect?
Contact your employer immediately to request a corrected W2 (Form W2c).
4. How can I use my W2 to estimate taxes?
You can enter the relevant values into our tax calculators to quickly estimate your tax
liability.
Tools and Resources
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👉 Quick Tax Calculator
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👉 Advanced Tax Calculator
