W-2 Form
What Is W-2 Form?
A W-2 form is a tax document employers provide to employees each year that reports wages earned and taxes withheld during the tax year.
Employers must send W-2 forms to employees and the Internal Revenue Service (IRS).
Why It Matters
The W-2 form is one of the most important documents used when filing a tax return.
It shows:
- total wages earned
- federal and state income taxes withheld
- Social Security and Medicare taxes paid
This information helps determine whether you owe additional taxes or receive a refund.
How the W-2 Form Works
Employers issue W-2 forms to employees after the end of the tax year, typically by the end of January.
Employees use the information reported on the form to complete their Form 1040 when filing their federal tax return.
Copies are also sent to the Social Security Administration and IRS for verification.
Example
If you earned $55,000 in wages and $6,000 was withheld for federal taxes, those amounts appear on your W-2 and are reported when filing your tax return.
W-2 Form vs 1099 Form
- A W-2 form reports income earned as an employee.
- A 1099 form reports income earned as an independent contractor or from other sources.
FAQs About the W-2 Form
When do employers send W-2 forms?
Employers must send them by the end of January following the tax year.
What if you lose your W-2 form?
You can request another copy from your employer.
Do freelancers receive a W-2?
No. Independent contractors typically receive a 1099 form instead.
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