History

Question

This image shows a W-2 form. Which best describes the purpose of this document?

This image shows a W-2 form. Which best describes the purpose of this document?

2 Answer

  • Answer:

    It shows how much a person earned, and how much was withheld in taxes.

    Explanation:

    W-2 form is an annual report, which the employer must inform the wages and the salary a person has earned in a year with all the federal, states and other taxes (like Social Security and Medicare tax) that were withheld from the paycheck.

    The W-2 form is used later to calculated with your Federal tax how much tax a person has paid and if it is necessary to pay more tax or to receive a tax refund.

  • Answer:

    B

    Explanation:

    It shows how much a person earned, and how much was withheld in taxes.

NEWS TODAY