2015 IRS Form W-2 Instructions for Employee

2015 IRS Form W-2 Instructions for Employee
Box 1. Enter this amount on the wages line of your tax return.
Box 2. Enter this amount on the federal income tax withheld line of your tax return.
Box 5. You may be required to report this amount on Form 8959, Additional Medicare Tax. See
Form 1040 instructions to determine if you are required to complete Form 8959.
Box 6. This amount includes the 1.45% Medicare Tax withheld on all Medicare wages and tips
shown in Box 5, as well as the 0.9% Additional Medicare Tax on any of those Medicare wages
and tips above $200,000.
Box 8. This amount is not included in boxes 1, 3, 5, or 7. For information on how to report tips
on your tax return, see your Form 1040 instructions.
You must file Form 4137, Social Security and Medicare Tax on Unreported Tip Income, with
your income tax return to report at least the allocated tip amount unless you can prove that you
received a smaller amount. If you have records that show the actual amount of tips you
received, report that amount even if it is more or less than the allocated tips. On Form 4137 you
will calculate the social security and Medicare tax owed on the allocated tips shown on your
Form(s) W-2 that you must report as income and on other tips you did not report to your
employer. By filing Form 4137, your social security tips will be credited to your social security
record (used to figure your benefits).
Box 10. This amount includes the total dependent care benefits that your employer paid to you
or incurred on your behalf (including amounts from a section 125 (cafeteria) plan). Any amount
over $5,000 is also included in box 1. Complete Form 2441, Child and Dependent Care
Expenses, to compute any taxable and nontaxable amounts.
Box 11. This amount is (a) reported in box 1 if it is a distribution made to you from a
nonqualified deferred compensation or nongovernmental section 457(b) plan or (b) included in
box 3 and/or 5 if it is a prior year deferral under a nonqualified or section 457(b) plan that
became taxable for social security and Medicare taxes this year because there is no longer a
substantial risk of forfeiture of your right to the deferred amount. This box should not be used if
you had a deferral and a distribution in the same calendar year. If you made a deferral and
received a distribution in the same calendar year, and you are or will be age 62 by the end of
the calendar year, your employer should file Form SSA-131, Employer Report of Special Wage
Payments, with the Social Security Administration and give you a copy.
Box 12. The following list explains the codes shown in box 12. You may need this information to
complete your tax return. Elective deferrals (codes D, E, F, and S) and designated Roth
contributions (codes AA, BB, and EE) under all plans are generally limited to a total of $18,000
($12,500 if you only have SIMPLE plans; $21,000 for section 403(b) plans if you qualify for the
15-year rule explained in Pub. 571). Deferrals under code G are limited to $18,000. Deferrals
under code H are limited to $7,500.
However, if you were at least age 50 in 2015, your employer may have allowed an additional
deferral of up to $6,000 ($3,000 for section 401(k)(11) and 408(p) SIMPLE plans). This
additional deferral amount is not subject to the overall limit on elective deferrals. For code G, the
limit on elective deferrals may be higher for the last 3 years before you reach retirement age.
Contact your plan administrator for more information. Amounts in excess of the overall elective
deferral limit must be included in income. See the “Wages, Salaries, Tips, etc.” line instructions
for Form 1040.
Note. If a year follows code D through H, S, Y, AA, BB, or EE, you made a make-up pension
contribution for a prior year(s) when you were in military service. To figure whether you made
excess deferrals, consider these amounts for the year shown, not the current year. If no year is
shown, the contributions are for the current year.
A—Uncollected social security or RRTA tax on tips. Include this tax on Form 1040. See “Other
Taxes” in the Form 1040 instructions.
B—Uncollected Medicare tax on tips. Include this tax on Form 1040. See “Other Taxes” in the
Form 1040 instructions.
C—Taxable cost of group-term life insurance over $50,000 (included in boxes 1, 3 (up to social
security wage base), and 5)
D—Elective deferrals to a section 401(k) cash or deferred arrangement. Also includes deferrals
under a SIMPLE retirement account that is part of a section 401(k) arrangement.
E—Elective deferrals under a section 403(b) salary reduction agreement
F—Elective deferrals under a section 408(k)(6) salary reduction SEP
G—Elective deferrals and employer contributions (including nonelective deferrals) to a section
457(b) deferred compensation plan
H—Elective deferrals to a section 501(c)(18)(D) tax-exempt organization plan. See “Adjusted
Gross Income” in the Form 1040 instructions for how to deduct.
J—Nontaxable sick pay (information only, not included in boxes 1, 3, or 5)
K—20% excise tax on excess golden parachute payments. See “Other Taxes” in the Form 1040
instructions.
L—Substantiated employee business expense reimbursements (nontaxable)
M—Uncollected social security or RRTA tax on taxable cost of group-term life insurance over
$50,000 (former employees only). See “Other Taxes” in the Form 1040 instructions.
N—Uncollected Medicare tax on taxable cost of group-term life insurance over $50,000 (former
employees only). See “Other Taxes” in the Form 1040 instructions.
P—Excludable moving expense reimbursements paid directly to employee (not included in
boxes 1, 3, or 5)
Q—Nontaxable combat pay. See the instructions for Form 1040 or Form 1040A for details on
reporting this amount.
R—Employer contributions to your Archer MSA. Report on Form 8853, Archer MSAs and LongTerm Care Insurance Contracts.
S—Employee salary reduction contributions under a section 408(p) SIMPLE plan (not included
in box 1)
T—Adoption benefits (not included in box 1). Complete Form 8839, Qualified Adoption
Expenses, to compute any taxable and nontaxable amounts.
V—Income from exercise of nonstatutory stock option(s) (included in boxes 1, 3 (up to social
security wage base), and 5). See Pub. 525 and instructions for Schedule D (Form 1040) for
reporting requirements.
W—Employer contributions (including amounts the employee elected to contribute using a
section 125 (cafeteria) plan) to your health savings account. Report on Form 8889, Health
Savings Accounts (HSAs).
Y—Deferrals under a section 409A nonqualified deferred compensation plan
Z—Income under a nonqualified deferred compensation plan that fails to satisfy section 409A.
This amount is also included in box 1. It is subject to an additional 20% tax plus interest. See
“Other Taxes” in the Form 1040 instructions.
AA—Designated Roth contributions under a section 401(k) plan
BB—Designated Roth contributions under a section 403(b) plan
DD—Cost of employer-sponsored health coverage. The amount reported with Code DD is
not taxable.
EE—Designated Roth contributions under a governmental section 457(b) plan. This amount
does not apply to contributions under a tax-exempt organization section 457(b) plan.
Box 13. If the “Retirement plan” box is checked, special limits may apply to the amount of
traditional IRA contributions you may deduct. See Pub. 590, Individual Retirement
Arrangements (IRAs).
Box 14. Employers may use this box to report information such as state disability insurance
taxes withheld, union dues, uniform payments, health insurance premiums deducted,
nontaxable income, educational assistance payments, or a member of the clergy's parsonage
allowance and utilities. Railroad employers use this box to report railroad retirement (RRTA)
compensation, Tier 1 tax, Tier 2 tax, Medicare tax and Additional Medicare Tax. Include tips
reported by the employee to the employer in railroad retirement (RRTA) compensation.
Note. Keep Copy C of Form W-2 for at least 3 years after the due date for filing your income tax
return. However, to help protect your social security benefits, keep Copy C until you begin
receiving social security benefits, just in case there is a question about your work record and/or
earnings in a particular year.