What information is primarily reported on a W-2 form?

The W-2 form is a crucial document used by employers to report an employee's annual wages and the amount of taxes withheld from their paychecks. It provides detailed information about the income earned during the tax year, the federal and state taxes that were deducted, Social Security contributions, and Medicare taxes. This information is vital for employees when filing their income tax returns, as it helps them accurately report their earnings and determine their tax liability or refund.

Understanding this context highlights the importance of the W-2 in the tax preparation process. It serves as an official record of employment income, which is essential for verifying earnings and taxes paid. Other options do not pertain to the primary intent of a W-2. For instance, Social Security benefits are reported on different forms, residency verification is not a function of the W-2, and income from various sources would typically be detailed on other tax documents like a 1099 form.