W-2 and W-4

Assume that Maxwell and his spouse anticipate earning around $110,000 in combined income this year. Given how he's completed this W-4 form, how many children under the age of 17 does Maxwell have?

3

Based on the W-2 provided, Lily paid Indiana a state income tax rate of ____.

3.2%

Based on the W-2 provided, Social Security tax withheld for Lily was __________ of wages and Medicare tax withheld was __________ of wages.

6.2%, 1.45%

When Maxwell completes this W-4, who should he submit it to?

Big City Office Furniture

All of the following employee information is included on a W-2 form EXCEPT...

Employee's date of birth

Based on the W-2 form provided, what was the largest withholding?

Federal income tax

This form will be sent to Lily by the end of January. She will use this W-2 form to...

File her income taxes

Why is it extremely important to read the fine print of your W-4 form?

For individual lines of the W-4 of accompanying worksheets there are different directions based on your filing status.s How many jobs you have, how much your anticipated earning etc. if you don't read carefully you may enter the wrong values,

As Lily is completing her 1040 form, what piece of information will she find on a different document rather than on this W-2?

Income earned from her investments

What is the purpose of a W-2 form?

It shows important information about the income you have earned from your employer. To file your income taxes you need those documents

Based on this W-2, which of the following statements is TRUE?

Lily earned more than $12,950 (which is the standard deduction amount)

What is Maxwell's filing status?

Married filing jointly

Based on the information provided on this W-4 form, which statement can you assume is TRUE?

Maxwell and his spouse both work, or Maxwell himself has two jobs

A W-4 form is given to you by your employer to complete for that specific job. Which statement below is TRUE?

Maxwell completed this W-4 for his job at Big City Office Furniture

If Maxwell and his spouse were to have another child but all other aspects of their life stayed the same, which entries on a new W-4 form would he need to change?

Step 3

In June Maxwell's father comes to live in their home and can count as Maxwell's dependent. What steps does Maxwell need to take next?

Submit a new W-4, claiming $500 more in Box 3

In order to fill out this W-4 form, Maxwell needed to know all of this information EXCEPT...

The amount of taxes he's paid in the last five years

What was the total amount deducted from Lily's pay for Federal, State, and Local income tax?

$1,781.33

What were Lily's gross wages for this period?

$14,450

How much EXTRA money is Maxwell having held from each paycheck?

$50

As Lily files her taxes, she learns that her federal total tax due ends up being $190. According to her Federal income tax withheld, how much of a tax refund can she expect back?

$890.50

Given how he's completed this W-4 form, how many other dependents does Maxwell have?

0