Intuit Academy Tax Practice Exam

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What information does Box 1 on Form W-2 provide?

Federal income tax withheld
Total wages, tips, and other compensation
State income tax withheld
Employment start date

The correct answer is: Total wages, tips, and other compensation

Box 1 on Form W-2 provides the total wages, tips, and other compensation that a taxpayer has received during the tax year. This amount reflects the employee's taxable earnings and is crucial for accurately reporting income when filing a tax return. This figure includes not just regular wages but also bonuses, commissions, and other forms of compensation that contribute to the total income reported to the IRS. Proper understanding of this box is essential for ensuring that individuals report their income correctly and for calculating any federal tax obligations. The other options, while relevant to the overall tax reporting process, pertain to different information on the W-2 form. Federal income tax withheld is reflected in another box, and State income tax withheld is shown elsewhere as well. The employment start date is not included on the W-2. Understanding where to find specific information on the W-2 allows taxpayers to utilize the form effectively for their tax filings.