IRS Form W-2 is one of the most common tax forms an individual may receive. This form is sent to taxpayers after the fiscal year ends if they have earned income from a W-2 employer. Form W-2, or the Wage and Tax Statement, is sent by employers that pay an individual at least $600 in noncash income if income, Medicare or social security taxes were withheld. Taxpayers report this income and the associated withholdings on their income tax returns, such as Form 1040. Form W-2 will be used to report withheld taxes if the individual meets the right exemption criteria.