W-2

A W-2 is a form provided by your employer each year that summarizes your earnings and the taxes withheld from your paycheck. It shows your total income, Social Security, Medicare, and federal and state taxes taken out. This information is used to file your annual tax return and determine if you owe additional taxes or are due a refund. Employers send copies of the W-2 to both employees and the IRS, ensuring tax reporting accuracy and transparency regarding your income and withheld taxes for the year.