Form W-2 for 2026: Box-by-Box Guide, Box 12 Codes and What Changed
Your 2026 Form W-2 is due from your employer by February 1, 2027. New for 2026: box 12 codes TP (cash tips reported) and TT (qualified overtime), which feed the new tips and overtime deductions, code TA (Trump account contributions), and box 14b for the tipped-occupation code (IRS W-2 instructions (2026)). Box 1 is your taxable wages for income tax; boxes 3 and 5 are your Social Security and Medicare wages, which still include 401(k) deferrals.
The W-2 boxes that go on your return
| Box | What it is | Where it goes |
|---|---|---|
| 1 | Wages, tips, other compensation: taxable wages after pre-tax 401(k)/403(b)/457(b) deferrals and cafeteria-plan deductions | Form 1040 line 1a |
| 2 | Federal income tax withheld | Form 1040 line 25a |
| 3 | Social Security wages: includes 401(k) deferrals; capped at the $184,500 wage base (boxes 3 + 7) (SSA) | Social Security tax check; excess withholding with 2+ employers |
| 4 | Social Security tax withheld (6.2% of box 3) | Schedule 3 line 11 if over the maximum |
| 5 | Medicare wages and tips: no cap | Form 8959 (Additional Medicare Tax) |
| 6 | Medicare tax withheld (1.45%, plus 0.9% on wages over $200,000) | Form 8959 |
| 12 | Coded amounts (see the table below) | Depends on the code |
| 13 | Checkboxes: statutory employee, retirement plan, third-party sick pay | Schedule C (statutory); IRA deduction limits (retirement plan) |
| 14a / 14b | Other information / Treasury tipped occupation code (new) | Schedule 1-A (tips) |
| 15-20 | State and local wages and tax withheld | Your state return |
Box 1 vs box 3 vs box 5: a worked example
A single employee earns $70,000 in 2026, defers $6,000 to a traditional 401(k) and pays $5,000 of health premiums and HSA contributions through the employer’s cafeteria plan. The 401(k) money leaves box 1 but stays in boxes 3 and 5; the cafeteria-plan money leaves all three, which is why it also saves Social Security and Medicare tax ($4,973 instead of $5,355 on $70,000) (W-2 instructions, box 3; Publication 15).
| Box | Amount |
|---|---|
| Box 1: $70,000 − $6,000 − $5,000 | $59,000 |
| Boxes 3 and 5: $70,000 − $5,000 | $65,000 |
| Box 4: Social Security tax | $4,030 |
| Box 6: Medicare tax | $943 |
| Boxes 4 + 6 together | $4,973 |
| AGI (Form 1040 line 11) and taxable income (line 15) | $59,000 / $42,900 |
| 2026 federal income tax on this W-2 (what box 2 would ideally hold) | $4,903 |
Your own boxes 1, 3 and 5
An estimate from QuantCalc’s open tax engine (federal 2.6.0, state 1.26.0) for the 2026 tax year. Not tax advice: your return depends on facts this page does not ask about, so check a move with your tax preparer or custodian before acting. How the engine computes each line, with its official source: federal, state.
Box 12 codes (2026)
| Code | Meaning |
|---|---|
| D | Elective deferrals to a 401(k) (incl. SIMPLE 401(k)) |
| E | Elective deferrals to a 403(b) |
| G | Deferrals and employer contributions to a 457(b) |
| W | Employer HSA contributions (incl. employee contributions through a cafeteria plan) |
| DD | Cost of employer-sponsored health coverage (information only) |
| AA | Designated Roth contributions to a 401(k) |
| BB | Designated Roth contributions to a 403(b) |
| C | Taxable cost of group-term life insurance over $50,000 |
| V | Income from exercising nonstatutory stock options |
| S | Salary reduction contributions to a SIMPLE IRA |
| TA | NEW for 2026: employer contributions to a Trump account (section 128) |
| TP | NEW for 2026: total cash tips reported to the employer |
| TT | NEW for 2026: total qualified overtime compensation |
Statutory employees, employees and non-employees
| Employee | Statutory employee | Non-employee (contractor) | |
|---|---|---|---|
| Form | W-2 | W-2, box 13 checked | 1099-NEC |
| Income tax withheld | Yes | No | No |
| Social Security and Medicare | 7.65% withheld | 7.65% withheld | 15.3% self-employment tax |
| Where income goes | Form 1040 line 1a | Schedule C (expenses deductible) | Schedule C |
Statutory employees are four groups: drivers who distribute food, beverage or laundry on commission; full-time life insurance sales agents for one company; home workers on materials the business supplies; and full-time traveling or city salespeople taking orders from businesses (IRS).
Box 12 code D is your retirement saving. QuantCalc runs where it leads — savings, withdrawals, taxes and Medicare surcharges — year by year, free.
Run the free tax-aware simulation →Common questions
- When will I get my 2026 W-2?
- Employers must furnish 2026 Forms W-2 to employees by February 1, 2027, the same date they file them with the Social Security Administration (IRS W-2 instructions (2026)). If yours has not arrived, ask the employer for it; if a box is wrong, ask for a corrected Form W-2c.
- What is a statutory employee?
- A worker who is an independent contractor under the common-law rules but is treated as an employee by statute for Social Security and Medicare tax: certain commission drivers, full-time life insurance sales agents, home workers and full-time traveling or city salespeople. Their employer checks box 13 “Statutory employee”, withholds Social Security and Medicare tax but not income tax, and they report the income and expenses on Schedule C (IRS: Statutory employees).
- What is the difference between a W-2 and a 1099-NEC?
- A W-2 reports an employee’s wages, with income tax and FICA withheld. A 1099-NEC reports nonemployee compensation paid to an independent contractor, with nothing withheld: the contractor pays income tax and 15.3% self-employment tax, usually through quarterly estimated payments (IRS: Form 1099-NEC).
- Why is box 1 lower than boxes 3 and 5?
- Box 1 leaves out pre-tax 401(k), 403(b) and 457(b) deferrals; boxes 3 and 5 include them, because those deferrals are still subject to Social Security and Medicare tax. Cafeteria-plan (section 125) health premiums, health FSA and HSA payroll contributions come out of all three (W-2 instructions). In the example, box 1 is $59,000 and boxes 3 and 5 are $65,000.
- What changed on the 2026 W-2?
- New box 12 codes TP (cash tips reported to the employer), TT (qualified overtime compensation) and TA (employer contributions to a Trump account), and box 14 split into 14a (other) and 14b (Treasury tipped occupation code), so workers can claim the new tips and overtime deductions (IRS W-2 instructions (2026)).