Tax Forms

W-2

A W-2 is the year-end wage statement employers give employees to show taxable wages and withholding for the year.

Quick answer

A W-2 is the year-end wage statement employers give employees to show taxable wages and withholding for the year.

It matters because it feeds directly into an individual tax return and shows how much tax was already withheld.

An employee earning salary from a company receives a W-2 in January for the prior year.

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Plain-English Definition

What W-2 means

A W-2 is the year-end wage statement employers give employees to show taxable wages and withholding for the year.

Why it matters It matters because it feeds directly into an individual tax return and shows how much tax was already withheld.
Simple example An employee earning salary from a company receives a W-2 in January for the prior year.
Related Questions

Questions people ask about W-2

What does W-2 mean?

A W-2 is the year-end wage statement employers give employees to show taxable wages and withholding for the year.

Why does W-2 matter?

It matters because it feeds directly into an individual tax return and shows how much tax was already withheld.

What is a simple example of W-2?

An employee earning salary from a company receives a W-2 in January for the prior year.

When should I ask a CPA about W-2?

Ask a CPA when the form affects business income, contractor payments, payroll, or a filing deadline you are unsure about.

How is W-2 different from 1099-NEC?

W-2 means A W-2 is the year-end wage statement employers give employees to show taxable wages and withholding for the year. 1099-NEC means A 1099-NEC is the IRS form businesses use to report nonemployee compensation, usually payments of $600 or more to an independent contractor during the year. The difference is that they apply to different tax, accounting, or business situations and should not be treated as interchangeable.

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