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A W-4 is what you complete upon being hired, and anytime you want to change what it says, that confirms your FID# and information, and directs whoever is responsible for calculating your withholding (as required by law) to do so using certain paramters...primarilarly - how many dependents you expect to claim when claculating you tax due for the year and filing your return, so the amount withheld can be adjusted accordingly. (Understanding too much withheld lowers the size of each net paycheck...too little and you would have to pay penalties and interest - and have the additional saved and able to send). The W-2 is a form you receive (normally) once a year from each employer. It identifies all the income of different types it paid you through the year...and identifies what payments of withholding, FICA, insurance, State taxes, etc it made on your behalf. The W-2 goes to you AND the tax authorities (IRS), so when you file your return the computer can match that what you say you made, and what you say was paid on your behalf, is what the employer reported and paid over for you.

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Q: What is the difference between a W-2 and a W-4?
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What is the difference between a W2 and a W4 form?

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