The tax form sent to each employee in January showing the amount of wages earned and taxes withheld in the prior year is known as Form

The correct choice is the W-2 form, which is crucial for both employees and the IRS during tax season. The W-2 form provides a detailed summary of an employee's earnings for the year, along with the amount of federal, state, and other taxes that have been withheld from their paycheck. This information is essential for individuals when they prepare their income tax returns, as it helps them report their income accurately and claim any potential tax refunds based on the taxes withheld.

In contrast, the 1040 and 1040EZ forms are used for filing individual income tax returns but do not provide payroll information. The 1040 form is a more comprehensive tax return that accommodates various types of income and deductions, while the 1040EZ is a simplified version for straightforward tax situations. The W-4 form, on the other hand, is a document that employees complete to inform their employer of their tax withholding preferences. It indicates how much federal income tax should be withheld from their paychecks, but it does not summarize earnings or taxes withheld at the end of the year.

Thus, the W-2 is the correct form that shows the total wages earned and taxes withheld, making it an essential document for tax preparation and reporting.