What is W-2 form and How to Read It: Wage and Tax Statement
The W-2 form, also called the Wage and Tax Statement, is one of themost important tax documentsyou'll receive each year. Employers send it to both you and the IRS to show how much money you earned and how much tax was withheld from your paycheck. Understanding your W-2 helps you file your taxes correctly and avoid mistakes that could delay your refund.
For example:if youremployer withheld $5,000 in federal taxduring the year, you'll see that amount clearly listed in Box 2 of your W-2.
