W-2 Form, Wage and Tax Statement
The W-2 Form, Wage and Tax Statement, is an Internal Revenue Service (IRS) form used to report an employee’s wages and taxes withheld from their paycheck. It is issued by employers to their employees and is used to report wages, tips, and other compensation paid to the employee during the year. The W-2 Form also reports the amount of federal, state, and other taxes withheld from the employee’s wages. The employee must use the information on the W-2 Form to complete their federal and state income tax returns.
History of the W-2 Form
The W-2 Form was first introduced in the 1950s as part of the Internal Revenue Code. It was designed to simplify the process of filing taxes by providing employers with a standardized form to report wages and taxes withheld from their employees. The form has been updated several times since its introduction, most recently in 2020, to reflect changes in the tax code.
Comparison of W-2 Form to Other Tax Forms
| Form | Purpose | Issued By |
|---|---|---|
| W-2 Form | Report wages and taxes withheld from employee’s paycheck | Employer |
| 1099 Form | Report income from self-employment, interest, dividends, and other sources | Payor |
| 1040 Form | Report income and calculate taxes owed | Taxpayer |
Summary
The W-2 Form is an IRS form used to report an employee’s wages and taxes withheld from their paycheck. It is issued by employers to their employees and is used to report wages, tips, and other compensation paid to the employee during the year. The W-2 Form also reports the amount of federal, state, and other taxes withheld from the employee’s wages. For more information about the W-2 Form, visit the IRS website or consult a tax professional.
See Also
- 1099 Form
- 1040 Form
- Tax Withholding
- Tax Return
- Tax Refund
- Tax Deduction
- Tax Credit
- Tax Exemption
- Taxable Income
- Tax Rate
