Form W-2 is a reporting for issued by employers to employees. The W-2 shows the amount of wages paid to the employee during the year, as well as the amount of taxes withheld.
A W-2 can also show other information important to a person’s tax return. For example, Box 12 of the W-2 reports contributions to retirement accounts such as a 401(k), which could be important for the Retirement Savers Credit. If the employer pays for moving expenses of an employee who relocates to a new location, those payments will sometimes be reported on the W-2 as well and will affect the calculation of moving expenses.
For more tax and accounting terms, check out the Glossary page on this website.
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