The W-2 form, also known as the Wage and Tax Statement, is a crucial document used by employers to report their employees’ annual wages and tax withholdings to the Internal Revenue Service (IRS). It provides a comprehensive breakdown of various income sources and tax-related information. As you receive your W-2 each year, it’s essential to understand the distinction between taxable and non-taxable items listed on the form. In this article, we will explore common taxable and non-taxable items found on the W-2 form and how they impact your income tax liability.