How to Read Your W-2 (2026): Box by Box, in Plain English

"This Isn't What I Earned"

The most common W-2 question is also the easiest to answer. Box 1 is lower than your salary because Box 1 is not your salary — it is your federal taxable wages after pre-tax deductions. Nothing has been stolen and nothing is missing.

Here is what each number that matters actually holds.

Box 1 — Wages, Tips, Other Compensation

Gross pay minus traditional 401(k) or 403(b) deferrals, Section 125 health premiums, HSA and FSA contributions, and a few other pre-tax items. Add back your retirement deferrals and premiums and you should be close to your year-to-date gross.

Box 2 — Federal Income Tax Withheld

What your employer sent to the IRS on your behalf, driven by your Form W-4. It is an estimate of your liability, not the liability itself. A refund means Box 2 overshot; a bill means it undershot.

Boxes 3 and 4 — Social Security

Box 3 is wages subject to Social Security, capped at the 2026 wage base of $184,500. Box 4 should be almost exactly 6.2% of Box 3. If it is not, ask payroll.

Boxes 5 and 6 — Medicare

Box 5 has no cap, so it is usually larger than Box 1 and can be larger than Box 3. Box 6 should be 1.45% of Box 5, plus 0.9% on wages above $200,000.

Why Box 5 Beats Box 1

Because 401(k) money escapes income tax but not payroll tax. A worker with $62,000 gross, $2,500 of 401(k) deferrals and $1,800 of pre-tax premiums has roughly $57,700 in Box 1 and $60,200 in Box 5. Both are correct.

Where Is My Overtime?

Nowhere specific — and this catches people who worked hundreds of premium hours. Overtime, double time, shift differentials and bonuses all fold into the same wage boxes as regular pay. Your final pay stub of the year is the only document that breaks them out, which is a good reason to keep it.

A Two-Minute Reconciliation

• . Final stub year-to-date gross, minus pre-tax deductions, should equal Box 1.
• . Stub year-to-date Social Security withheld should equal Box 4.
• . Stub year-to-date Medicare withheld should equal Box 6.

Differences of a cent or two are rounding. Anything larger deserves a conversation, and if the form is genuinely wrong, ask for a corrected W-2c before you file.

Run Your Own Numbers

The W-2 calculator estimates each box from your gross pay and deductions. Rebuild the wage side with the gross pay calculator, check withholding against the federal tax calculator and FICA calculator, and if you also invoice clients, see the 1099 tax calculator.