What is the purpose of the 'W-2' form in TurboTax?

The purpose of the W-2 form in TurboTax is to report wages and taxes withheld for employees. This form is issued by employers to their employees at the end of the year and includes critical information, such as the total annual income earned by the employee and the amount of federal, state, and other taxes withheld from their paychecks throughout the year.

When filing taxes, individuals use the information from their W-2 forms to accurately report their earnings and tax withholdings. This is crucial, as it ensures that their tax returns reflect their actual income and the taxes that have already been paid. As a result, the W-2 is a foundational document for employee tax filing, enabling the IRS to verify the taxpayer's income and withholding information.

Other forms mentioned do not serve this purpose. For example, forms related to capital gains or self-employment income focus on different types of income and reporting requirements, while summaries of tax credits are concerned with eligible deductions rather than direct income and tax reporting from employment.