The W-2 form, officially called the "Wage and Tax Statement," is a tax document that employers in the United States must provide to their employees each year. It reports an employee's total wages or salary earned during the previous year and the amount of taxes withheld from those earnings, including federal income tax, Social Security tax, and Medicare tax
. Key information the W-2 form tells you includes:
- Your total taxable wages or salary for the year.
- The amount of federal, state, and local income taxes withheld from your pay.
- Social Security and Medicare wages and the taxes withheld for these programs.
- Any employer-provided benefits such as health insurance or contributions to retirement plans.
- Your employer’s identification details and your Social Security number.
Employees use the W-2 form to file their federal and state income tax returns accurately, as it shows how much income they earned and how much tax was already paid through withholding
. The Social Security Administration also uses the information from W-2 forms to calculate Social Security benefits for workers
. Employers must provide W-2 forms to employees by January 31 following the tax year, allowing employees to prepare their tax returns by the April deadline
. If there are errors on the W-2, employees should contact their employer for correction
. In summary, the W-2 form tells you your annual earnings from an employer and the taxes withheld, which are essential for tax filing, verifying income, and tracking Social Security contributions
