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Step 1
Locate the employer and employee identification information. The employee's Social Security number is located in box "a" and the employer's tax ID number is located in box "b." The employer's and employee's names and addresses are located in boxes "c" through "f."
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Step 2
Locate your wage information in boxes 1 through 8. The wages used to calculate income tax, Medicare tax and Social Security tax may be different. These values are entered in boxes 1, 3 and 5. The amounts withheld for each category are entered in boxes 2, 4 and 6. Information on tips received, which is not included elsewhere on the form, is entered in boxes 7 and 8.
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Step 3
Find the values for special income situations in boxes 9 through 12. The value, if any, in box 9 represents an advance Earned Income Credit paid to the employee. Dependent care expenses paid by an employer are recorded in box 10. If the employee received a disbursement from a "non-qualified" retirement plan that cannot be reported on a Form 1099-R, that value will be recorded in box 11. Alpha codes for 28 other special circumstances are entered in box 12, along with the respective values.
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Step 4
Read the final federal income tax information on the form in boxes 13 and 14. Box 13 includes three check boxes that provide information on how to handle other entries. For example, if a person is an active participant in a qualified retirement plan, the "Retirement Plan" check box will be marked and restrictions may apply on deductions the employee may take for IRA contributions. Any income not reported elsewhere, such as lease payments on an employee's car, are reported on Box 14.
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Step 5
Locate state and local tax information in boxes 15 through 20. If your state or locality requires tax withholding, that information is recorded in these boxes at the bottom of the Form W-2.
