What Is Form W-2?
Form W-2, the Wage and Tax Statement, is the form a US employer issues to each employee after the year ends, reporting total wages and the amounts withheld for federal income tax, Social Security, Medicare, and often state taxes. Employees use it to prepare their tax return.
W-2 vs. 1099
A W-2 is issued to employees, whose taxes are withheld by the employer. Independent contractors typically receive a Form 1099 instead and handle their own tax payments.
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🔗 Related Terms
More Taxes Terms
- Additional Medicare Tax
- Adjusted Gross Income (AGI)
- Alternative Minimum Tax (AMT)
- Capital Gains Tax
- Capital Loss
- Child Tax Credit
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Last updated: September 27, 2026. This definition is for general educational purposes only. It is not financial, investment, tax, legal, or medical advice, and it does not recommend any product or course of action. For decisions about your own situation, consult a qualified professional.