Intuit Academy Tax Practice Exam 2025 – 400 Free Practice Questions to Pass the Exam

The W-2 form is specifically designed for reporting an employee's annual wages and the amount of taxes withheld from their paycheck. Employers are required to send this form to their employees by January 31 each year, which provides a summary of the employee's earnings and tax deductions for the previous year. This information is critical for employees when filing their personal income tax returns, as it helps them accurately report their income and ensure they have accounted for the taxes already paid throughout the year.

In contrast, the other options refer to different tax-related documents or concepts. Claiming tax deductions for mortgage interest is typically done using Form 1098, which details the amount of mortgage interest paid during the year. Reporting total capital gains is generally done through Schedule D or Form 8949, which helps taxpayers report sales of assets and calculate taxes owed on profits. Documenting business expenses is usually done via Schedule C for sole proprietors or various forms depending on the business structure, rather than on a W-2 form.