difference between w4 and w2

Understanding the Difference Between W4 and W2 Forms

Introduction

When it comes to taxes, there are a lot of forms to navigate through. Two of the most common forms are the W4 and the W2 forms. They both have to do with taxes and your job, but they serve different purposes.

What Is a W4 Form?

A W4 form is a form that you fill out when you start a new job. This form tells your employer how much federal income tax to withhold from your paycheck. You have to fill out a W4 form so that your employer knows how much money to withhold from your paycheck for taxes.

What Is a W2 Form?

A W2 form is a form that your employer gives you at the end of the year. This form shows how much money you earned, how much money was withheld for taxes, and how much money you owe in taxes. You use this form when you file your taxes for the year.

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The Key Differences Between the W4 and the W2 Forms

The main difference between the W4 and the W2 forms is what they are used for. The W4 form is used to determine how much money is withheld from your paycheck for taxes, while the W2 form is used to report how much money you earned and how much taxes you paid for the year.

Another key difference is when you fill out each form. You have to fill out a W4 form when you start a new job, but you only receive a W2 form at the end of the year.

Conclusion

In summary, the W4 and W2 forms are both important tax forms, but they serve different purposes. The W4 form is used to determine how much money is withheld from your paycheck for taxes, while the W2 form is used to report how much money you earned and how much taxes you paid for the year. Understanding the differences between these two forms can help you navigate the tax process with ease.

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Table difference between w4 and w2

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