Confused about the difference between a W2 and a W4? You're not alone! These forms are crucial for understanding your employment taxes. Think of the W4 as your instruction manual for your employer. It's the form you fill out *before* you start a job, telling your employer how much federal income tax to withhold from each paycheck. It factors in things like your marital status, dependents, and other income to calculate your withholding.
On the other hand, the W2 is your year-end report card. Your employer sends you a W2 form at the end of each year, summarizing your total earnings and the total amount of taxes withheld from your paychecks during the year. You'll use this form when filing your income tax return. In short, the W4 is your estimate *before* taxes are withheld, while the W2 is a summary *after* the tax year concludes. Mastering these forms ensures accurate tax withholding and helps avoid surprises come tax season!
