What information does Form W-2 provide?

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Multiple Choice

What information does Form W-2 provide?

Form W-2 is the annual earnings statement your employer sends to you (and to the IRS) that shows how much you were paid in wages, tips, and other compensation, and how much tax was withheld from those earnings. It includes federal income tax withheld, as well as any state and local income tax withheld, along with Social Security and Medicare taxes. This information is used to prepare your tax return because it documents your income and the taxes you've already paid through withholding, helping determine whether you owe more tax or are due a refund. It does not report bank balances, investment income, or education credits and deductions, which come from other forms.

Form W-2 is the annual earnings statement your employer sends to you (and to the IRS) that shows how much you were paid in wages, tips, and other compensation, and how much tax was withheld from those earnings. It includes federal income tax withheld, as well as any state and local income tax withheld, along with Social Security and Medicare taxes. This information is used to prepare your tax return because it documents your income and the taxes you've already paid through withholding, helping determine whether you owe more tax or are due a refund. It does not report bank balances, investment income, or education credits and deductions, which come from other forms.

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