What is Form W-2?
Your employer issues a W-2 for each year you worked as an employee. It reports your total wages, tips, and compensation along with all taxes withheld — federal income tax, Social Security, Medicare, and state/local taxes. Employers must send W-2s by January 31.
SupportedKey Boxes
| Box | Description | Where it flows |
|---|---|---|
| Box 1 | Wages, tips, other compensation | Form 1040 Line 1a |
| Box 2 | Federal income tax withheld | Form 1040 Line 25a |
| Box 3 | Social Security wages | Schedule SE wage base offset |
| Box 4 | Social Security tax withheld | Informational |
| Box 5 | Medicare wages and tips | Form 8959 Line 1 (Additional Medicare threshold) |
| Box 6 | Medicare tax withheld | Form 8959 Line 19 (withholding credit) |
| Box 7 | Social Security tips | Schedule 1-A qualified tips |
| Box 10 | Dependent care benefits | Form 2441 Part III Line 12 |
| Box 12 Code D | 401(k) elective deferrals | Informational (not taxable income) |
| Box 12 Code W | HSA employer contributions | Form 8889 Line 6 |
| Box 13 | Statutory employee checkbox | Triggers Schedule C (business income) |
How PaisaTax Handles It
- Upload or manual add — drag-and-drop a W-2 PDF or click "Add W-2" to create a slot manually
- Slotted — one slot per employer. Add multiple W-2s for multiple jobs
- Auto-triggers: Box 12 Code W triggers Form 8889 (HSA). Box 10 with a value triggers Form 2441. Box 13 statutory employee creates a Schedule C slot.
- Aggregation: All W-2 Box 1 values sum to Form 1040 Line 1a. All Box 2 values sum to withholding.
Common Situations
- Multiple W-2s: Add one slot per employer. PaisaTax aggregates all wages and withholding automatically.
- HSA contributions (Box 12 Code W): Triggers Form 8889. Employer contributions reduce your personal contribution room.
- Statutory employee (Box 13): Income goes to Schedule C instead of Form 1040 Line 1a. Business expenses are deductible but this income is not subject to SE tax.