Your W-2 arrived — now what? We break down every box on the form, explain what it means for your return, and flag the most common W-2 errors that could cost you money if you don't catch them.
Understanding Your W-2: Box by Box
Box 1 is your total taxable wages — this is what gets reported on your federal return. Box 2 is federal income tax withheld. Box 3 and 4 are Social Security wages and tax withheld. Box 5 and 6 are Medicare wages and tax. Box 12 contains various codes for things like 401(k) contributions (code D), health insurance premiums (code DD), and more. Box 14 is for state-specific items your employer wants to report. If anything looks wrong, contact your employer's payroll department immediately — you have until April 15 to get a corrected W-2C.
Common W-2 Errors That Cost Taxpayers Money
The most common W-2 errors we see: incorrect Social Security number, wrong name spelling, Box 1 wages that don't match your pay stubs, missing or incorrect Box 12 codes, and state wages that don't match federal wages when they should. Any of these can cause your return to be rejected or trigger an IRS notice. Check your W-2 carefully against your final pay stub of the year before you bring it to us.
1099s: What to Expect and When to Worry
If you did any freelance work, received interest or dividends, sold investments, or received unemployment benefits, you should be receiving 1099s by January 31. The most common are 1099-NEC (non-employee compensation), 1099-INT (interest), 1099-DIV (dividends), and 1099-B (brokerage sales). If you received income but didn't get a 1099, you still owe tax on it — the IRS doesn't require a 1099 for you to owe taxes. Keep records of all income regardless of whether you receive a form.
From the Firm
Tax season is officially underway. Our office is open Monday through Friday 9am–5pm and Saturdays by appointment through April 15. Individual returns start at $275. If you're a new client, mention this newsletter and we'll waive the $50 new client setup fee. We look forward to serving you.