What does the W-2 form report?

The W-2 form is a crucial document used in the United States that reports an employee's annual wages and the taxes withheld from those wages during the year. Employers must complete and provide this form to their employees, usually by the end of January, to ensure that individuals can accurately file their tax returns.

This form includes essential information such as the total amount earned by the employee, Social Security wages, Medicare wages, and federal, state, and local taxes withheld. The significance of the W-2 form lies in its role in helping taxpayers understand their income and taxes paid, which they need for filing their annual tax returns.

The other options pertain to different financial documents or reports. Investment income and dividends are reported on forms like the 1099-DIV, property values and taxes paid are typically assessed through property tax statements, and loan balances and payment history are reported through credit reports or loan statements. Each of these serves different financial purposes and does not encapsulate the employee wage and tax information that the W-2 form does.