What is Form W-2?

Form W-2, or the Wage and Tax Statement, is a form employers give to employees and the Internal Revenue Service (IRS). It shows the income earned from an employer and the taxes withheld from an employee's paycheck so taxpayers can file their federal and state taxes. Lastly, a W-2 employee is someone whose employer withholds taxes from their paycheck and sends that information to the government.

Note: You can access Form W-2 directly on the IRS website.

Who Files Form W-2?

An employer must provide a W-2 form to every employee who has received a salary, wage, or other form of compensation during the year (this excludes independent contractors and self-employed individuals who use different tax forms).

The employer must send the employee the W-2 form on or before January 31 each year so that the employee can file income taxes before the deadline, commonly April 15.

Note: Taxpayers working for multiple employers receive separate W-2 forms for each job and also for federal, state, and local taxes.

Why is Form W-2 Important?

The W-2 form is essential for filing your taxes accurately. It helps you determine the amount of tax you owe or the refund you are due. If you have multiple W-2s from different jobs, you must include all of them when filing your taxes. The form summarizes all the taxes your employer withholds throughout the year, which helps the IRS determine whether you have paid enough or need to pay more.

Additionally, the W-2 form is required for filing various forms, such as the 1040 tax form. This information is crucial for ensuring compliance with the tax code and avoiding penalties.

Note:

• Employees fill out a W-4 form when starting a new job or updating their tax details.

• Employers complete a W-2 form at the end of the year and send it to employees to use for their tax returns.