Q:

Why do you need your W2 form?

A:

Quick Answer

Employees need W-2 forms to see how much of their wages employers withheld from their checks during a single tax year to pay federal, state and other taxes, according to TurboTax. Taxpayers use the form to file their state and federal taxes. Employees also use W-2 forms to determine whether they need to request that their employer adjust the amount being taken out of his checks.

Continue Reading

Full Answer

Sections used to divide W-2 forms include how much an employee earned during the year, the amount of federal tax withheld, and the amount of wages taken out for Medicare tax, state taxes and Social Security tax, notes TurboTax. Depending on the total amount withheld throughout the year, an individual either receives a refund if he paid the IRS more than necessary, or he owes the IRS money if he didn't have enough withheld from his wages.

Only employees receive W-2 forms, according to TurboTax. Someone who is an independent contractor or self-employed receives a 1099 Form from all companies and individuals he performed work for during the course of the tax year. As of 2015, the only time an independent contractor or self-employed individual receives a 1099 Form is when he earns at least $600 during a single tax year.

Learn more about Taxes

Related Questions

Explore