What are W-2s?

Answer 1

A W-2 is a form that is given to you at the end of the year by your employer.

The form shows how much taxable income you were paid and how much tax was taken out of your pay for the whole year.

You use the information on Form W-2 to fill out what is called a "tax return." A federal tax return is Form 1040. You fill out this form to calculate whether your employer took out the right amount of tax. Then you send it in to the government. If your employer took out too much, the government sends you a check called a "tax refund." If your employer took out too little, you have to send a check to the government. FYI, many people mistakenly call the tax refund check a "return." A return is the form you send to the government.

If you live or work in a state that has an income tax, you will also have to fill out a state return and send it to your state government.