IRS form W-2

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IRS form W-2

The form W-2, also known as the “Wage and Tax Statement,” is a document used by employers in the United States to report an employee’s annual wages and taxes withheld for a given tax year. It is a crucial document for both employees and the Internal Revenue Service (IRS) as it provides important information for filing income tax returns. The form W-2 contains various boxes that report different types of income, such as wages, tips, and other compensation, as well as taxes withheld, such as federal income tax, Social Security tax, and Medicare tax. It also includes information on any contributions made to retirement plans, such as a 401(k) or IRA. The form W-2 is typically issued to employees by January 31st of the following year and must be used when filing federal and state income tax returns. Employers are required by law to provide a copy of the form W-2 to both the employee and the IRS. It is important for employees to carefully review their form W-2 to ensure the accuracy of the information reported, as any discrepancies could result in delays or penalties when filing taxes.