A W-2 form is:

A W-2 form is:

• A. A federal tax form that reports wages earned and income taxes withheld
• B. A form for applying for a loan
• C. A form for reporting business expenses
• D. A form listing estimated tax payments

Answer: (A)

A W-2 is the employer-issued year-end summary that shows exactly how much you were paid and how much was withheld for taxes. It lists wages, Social Security and Medicare wages, and the federal (and state where applicable) taxes withheld. You use this information to prepare your personal tax return, and lenders may also use it to verify income. It isn’t a form for applying for a loan, it isn’t used to report business expenses (that’s handled on other schedules/forms), and it isn’t the form for reporting estimated quarterly tax payments.

A W-2 is the employer-issued year-end summary that shows exactly how much you were paid and how much was withheld for taxes. It lists wages, Social Security and Medicare wages, and the federal (and state where applicable) taxes withheld. You use this information to prepare your personal tax return, and lenders may also use it to verify income. It isn’t a form for applying for a loan, it isn’t used to report business expenses (that’s handled on other schedules/forms), and it isn’t the form for reporting estimated quarterly tax payments.