What information does a W-2 form provide?

The W-2 form is an essential document provided by employers to employees, summarizing an individual's annual earnings and the taxes withheld from their paychecks. This form includes vital information such as total wages, tips earned, and other compensation paid to the employee. Additionally, it details federal, state, and other taxes that have been withheld throughout the year.

This information is crucial for employees when filing their income tax returns, as it helps them accurately report their income and determine any potential refunds or amounts owed. The W-2 form ensures that the income reported to the IRS matches what the employer has reported, thereby helping to maintain compliance with tax regulations.

Other options do not accurately depict the purpose of the W-2. For instance, summaries of expenses, investment income details, and lists of deductions from taxable income relate to different tax forms or reports that serve distinct purposes. Therefore, the emphasis on wages paid and taxes withheld clearly identifies why the W-2 form is significant for both taxpayers and the government.