A W-2 form is a tax document used in the United States to report an employee’s annual wages and the amount of taxes withheld from their paycheck. It is provided by employers to their employees, typically by the end of January each year, and it is used to report income and calculate the individual’s federal, state, and local taxes.
The W-2 form includes information such as the employee’s wages, tips, and other compensation, as well as the amount of federal, state, and other taxes withheld from their paycheck. It also includes details about any retirement contributions, health insurance premiums, and other benefits provided by the employer.
Freelancers, on the other hand, generally do not receive W-2 forms because they are not employees. Instead, they are typically classified as independent contractors and are responsible for reporting their income and paying taxes on their own. Freelancers typically receive a Form 1099-MISC or Form 1099-NEC from each client or company that paid them $600 or more during the tax year. These forms report the total amount of income earned by the freelancer but do not include any tax withholding.
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