What is the purpose of a W-2 form?

The purpose of a W-2 form is to report an employee’s annual wages and the taxes withheld from those wages throughout the year. This form is issued by employers to their employees at the end of each calendar year and provides essential information for preparing individual income tax returns. The W-2 includes details such as the total earnings, Social Security wages, Medicare wages, and federal, state, and other local taxes withheld. This information is crucial for employees to accurately report their income and tax liability on their tax returns.

The other options, while presenting different types of tax forms or documentation, do not pertain to the specific function of a W-2. For instance, information regarding estimated tax payments would typically be reported using other forms designed for individuals making estimated payments. Self-employment income is reported on different forms, such as a Schedule C, and charitable contributions are documented through receipts or forms like IRS Form 8283, depending on the amount and type of contribution, rather than a W-2.