A W2 form, officially known as the "Wage and Tax Statement," is the document an employer sends to each employee and the Internal Revenue Service (IRS) at the end of the year. It reports your annual wages and the amount of taxes withheld from your paychecks. Understanding how these numbers are calculated can help you plan your finances and ensure your withholdings are correct.
Key Boxes on the W2 Form
Box 1: Wages, Tips, Other Compensation – This is your total taxable income before taxes are withheld.
Box 2: Federal Income Tax Withheld – The total amount of federal income tax your employer took out of your pay during the year.
Box 3 & 4: Social Security Wages and Tax – Social Security tax is currently 6.2% of your wages, up to a specific wage base limit ($168,600 for 2024).
Box 5 & 6: Medicare Wages and Tax – Medicare tax is 1.45% of all wages, with no wage limit.
How This Calculator Works
This calculator uses the 2024 Federal Income Tax brackets and the standard deduction to estimate your tax liability. It assumes a simplified scenario without extra credits or itemized deductions.
Example Salary
Filing Status
Est. Net Pay
$45,000
Single
$37,120
$75,000
Married
$64,810
$120,000
Single
$89,450
Standard Deduction (2024)
The standard deduction reduces the amount of income you are taxed on. For 2024, the amounts are: