Reporting Compensation
Taxable Wages, Salary, and Other Compensation
Except for tax-free fringe benefits, practically everything you receive for your work or services is taxed, whether paid in cash, property, or services. Your employer will generally report your taxable compensation on From W-2 and other information returns, such as Form 1099-R for certain retirement payments.
Understanding each box on your Form W-2 will stop you from over-reporting your income and help identify where you may save more in the future by taking advantage of tax-free fringe benefits offered by your employer.
