W-2
Back to GlossaryDefinition
Reports the employee's annual wages and the amount of taxes withheld from their paychecks.
Summary
A W-2 form is an official tax document that employers must provide to employees by January 31st each year. It summarizes all wages earned and taxes withheld during the previous tax year, including federal income tax, state tax, Social Security, and Medicare taxes. Employees use this form to complete their annual tax returns and determine if they owe additional taxes or are entitled to a refund.
Usage Context
Understanding W-2 forms is essential when learning about payroll taxes, tax preparation, employment documentation, and personal financial management.
Common Confusions
- Confusing W-2 with W-4 (the form used to determine withholding)
- Thinking the W-2 amount is what you take home (it shows gross wages)
- Not understanding that multiple W-2s are needed if you had multiple jobs
- Believing you can't file taxes if your W-2 is late
