1-9 Main Wage & Tax Boxes
Box 1
Wages, Tips, Other CompensationForm 1040 line 1a → total taxable federal wages; includes salary, bonuses, taxable fringe benefits; excludes pre-tax 401k, FSA, HSA contributions
Taxable
Box 2
Federal Income Tax WithheldForm 1040 → credit against tax owed; increases refund or reduces balance due
Withholding
Box 3
Social Security WagesSS tax base → may differ from Box 1 (pre-tax 401k reduces Box 1 but NOT Box 3); 2026 SS wage base ~$184,500
FICA
Box 4
Social Security Tax Withheld6.2% of Box 3 up to annual wage base; Form 1040 Schedule 3 if excess withheld (multiple jobs)
FICA
Box 5
Medicare Wages and Tips1.45% Medicare tax base; no cap; usually equals or exceeds Box 1 + Box 12 code W
FICA
Box 6
Medicare Tax Withheld1.45% of Box 5; does NOT include the Additional Medicare Tax (0.9%) which is employee-only and computed on Form 8959
FICA
Box 7
Social Security TipsTips reported by employee to employer; added to Box 3 for SS tax
Taxable
Box 8
Allocated TipsTips employer allocated (not reported by employee); taxable; not included in Boxes 1, 3, or 5 - add to income separately on Form 4137
Taxable
Box 10
Dependent Care BenefitsEmployer-provided dependent care assistance (FSA or direct) → Form 2441; up to $5,000 excludable; excess taxable
Benefits
Box 11
Nonqualified Deferred Comp (NQDC) DistributionsDistributions from nonqualified plans (SERP, 457(f)); already in Box 1; informational for SSA earnings test
Info
12 Box 12 Codes - The Most Misunderstood Box
12A
Uncollected SS or RRTA Tax on TipsForm 1040 Schedule 2 → employee owes this; employer could not collect because tips exceeded wages
Owed
12B
Uncollected Medicare Tax on TipsSchedule 2 → same situation as 12A; employee responsible
Owed
12C
Taxable Cost of Group-Term Life Insurance Over $50,000Already in Box 1, 3, 5 → informational; not deductible; employer-provided life over $50K creates imputed income
Taxable
12D
Elective Deferrals to a 401(k) PlanPre-tax contributions; reduces Box 1 but not Box 3/5; 2026 limit $23,500; not separately deductible on 1040
Retirement
12E
Elective Deferrals to a 403(b) PlanSame as 401(k) for schools and nonprofits; same $23,500 limit
Retirement
12F
Elective Deferrals to a SEP (408(k)(6))Salary reduction SEP contributions
Retirement
12G
Elective Deferrals to a 457(b) PlanGovernment employer deferred comp plan; $23,500 limit; separate from 401k/403b limits
Retirement
12H
Elective Deferrals to a 501(c)(18)(D) PlanEmployee-funded union pension; deductible on Schedule 1
Retirement
12J
Nontaxable Sick PayThird-party sick pay not subject to income tax; not in Box 1; informational
Nontaxable
12K
20% Excise Tax on Excess Golden Parachute PaymentsSchedule 2 → employer withheld 20% excise; employee's liability (IRC §4999)
Excise Tax
12L
Substantiated Employee Business Expense ReimbursementsAccountable plan reimbursements; not income; informational only
Nontaxable
12M
Uncollected SS Tax on Taxable Group-Term Life Over $50KSchedule 2 → employee owes this SS tax on imputed life insurance income
Owed
12N
Uncollected Medicare Tax on Taxable Group-Term LifeSchedule 2 → partner to 12M
Owed
12P
Excludable Moving Expense Reimbursements (Military Only)Post-TCJA, only active duty military moving expenses are excluded; not in Box 1
Nontaxable
12Q
Nontaxable Combat PayExcluded from income; can elect to include for EITC purposes (may increase EITC)
Nontaxable
12R
Employer Contributions to Archer MSAForm 8853 → not taxable if within limits; similar to HSA but older account type
Health
12S
Employee Salary Reduction to SIMPLE IRA (408(p))Pre-tax SIMPLE IRA contributions; 2026 limit $16,500; not separately deductible
Retirement
12T
Adoption BenefitsEmployer-provided adoption assistance; up to $17,280 excluded (2026); Form 8839; excess taxable
Benefits
12V
Income from Exercise of Nonstatutory Stock Options (NSO)Already in Box 1, 3, 5 → informational; confirms ordinary income recognition at exercise; basis = FMV on exercise date
Taxable
12W
Employer Contributions to Health Savings Account (HSA)Form 8889 → not taxable; combined with employee HSA contributions toward annual limit ($4,400/$8,750 for 2026)
Health
12Y
Deferrals Under §409A Nonqualified Deferred CompInformational; if plan is not compliant, full deferral becomes taxable + 20% excise + interest
Info
12Z
Income Under §409A Nonqualified Deferred Comp (Failure)Plan failed 409A requirements; income accelerated; also subject to 20% excise tax on Schedule 2
Taxable
12AA
Designated Roth Contributions to a 401(k)After-tax Roth 401k contributions; included in Box 1 but NOT deducted (already taxed); combined with 12D toward $23,500 limit
Retirement
12BB
Designated Roth Contributions to a 403(b)After-tax Roth 403(b) contributions; same treatment as 12AA
Retirement
12DD
Cost of Employer-Sponsored Health CoverageInformational only - NOT taxable; reports total premium (employer + employee shares); used for ACA reporting; do not report on 1040
Nontaxable
12EE
Designated Roth Contributions to a 457(b)After-tax Roth 457(b); separate limit from other plans
Retirement
12FF
Permitted Benefits Under QSEHRAQualified Small Employer HRA; 2026 limit ~$6,350 single/$12,800 family; reduces marketplace premium tax credit dollar for dollar
Health
12GG
Income from §83(i) Qualified Equity GrantsStartup equity; employee elected to defer income on equity grant; income recognized in year of 12GG deferral expiration
Taxable
12HH
Aggregate Deferrals Under §83(i) ElectionsTotal deferred income from qualified equity grants still outstanding; informational
Info
13 Box 13 Checkboxes
13-Stat
Statutory EmployeeIf checked: wages reported on Schedule C (not Schedule E or 1040 wages); can deduct business expenses; still subject to SE tax
Status
13-Ret
Retirement PlanIf checked: you (or your spouse) were eligible for employer retirement plan; affects IRA deduction phaseout thresholds
Retirement
13-Sick
Third-Party Sick PayIf checked: sick pay from a third party (insurance company); employer is not the payer; affects FICA coordination
Status
14 Box 14 - Other (Employer Defined)
Box 14
Other (Various - Employer Defined)Common entries: SDI (CA state disability - deductible on Sch A if itemizing), NJ FLI/SDI, NY SDI, union dues, employer-paid educational assistance, fringe benefits, ESPP info. Each employer defines their own Box 14 labels. The tax treatment depends on what the item actually is.
Varies
14-SDI
SDI / State Disability Insurance (CA, NJ, NY, etc.)If labeled SDI, CASDI, NJ SDI, or similar: this is a state tax paid by employee; deductible as a state tax on Schedule A (subject to $40,000 SALT cap under OBBBA)
State Tax
14-PUCC
Personal Use of Company Car (PUCC)Imputed income from personal use of employer vehicle; already in Box 1; informational for basis tracking
Taxable
14-STPIA
State/Government Pension ContributionsEmployee contributions to state pension plans; may be deductible in some states; not deductible federally
Info
15-20 State and Local Tax Boxes
Box 15
State & Employer's State ID NumberTwo-letter state code + employer's state tax ID; may appear twice if two states
State
Box 16
State Wages, Tips, etc.State tax base → may differ from Box 1 if state has different treatment of deductions (e.g., some states add back 401k deferrals)
State
Box 17
State Income Tax WithheldSchedule A → SALT deduction; subject to $40,000 household cap under OBBBA (phased down above $500,000 MAGI)
State
Box 18
Local Wages, Tips, etc.Local tax base (NYC, Philadelphia, etc.)
Local
Box 19
Local Income Tax WithheldSchedule A → part of SALT deduction; same $40,000 cap as state tax
Local
Box 20
Locality NameName of local jurisdiction for Box 18/19 (e.g., NYC, Yonkers, Philadelphia)
Local