Question 4
Different common tax forms serve distinct purposes. The W-2 reports wages and tax withheld for employees. The 1099 series reports other types of income — freelance work, interest, dividends. The 1040 is the primary individual income tax return form where you summarize income, claim deductions and credits, and calculate final tax owed or refund. Knowing which form you should expect (and which to keep) prevents common mistakes like missing income sources or failing to include necessary documentation. This question tests basic recognition of these common form roles.
Which form do most employees receive from their employer showing wages and taxes withheld?
Did You Also Know...
By Wise Wallet
Choosing a shorter auto loan reduces total interest paid but increases monthly payments—tradeoffs between cost and cash flow matter.