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GENERAL QUESTIONS
W-2
W-2
W-4
W-4
100

What does YTD stand for?

Year to date

100

 What do you know about Lily’s employment?

  1. Lily earned minimum wage plus tips

  2. Lily worked at Scoops Ice Cream in 2024

  3. Lily worked during every month of 2024

  4. Lily’s annual net pay (take-home pay) was $17,780 after taxes

Lily worked at Scoops Ice Cream in 2024

100

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

  1. Lily is contributing to a 401(k) retirement through her employer
  2. Lily works in the state of Indiana, which has a state income tax
  3. Lily’s taxable wages are much larger at the federal level than at the state or local level
  4. Lily earned less than $14,600 (which is the standard deduction amount)

Lily works in the state of Indiana, which has a state income tax

100

What is Maxwell’s filing status?

Married filing jointly

100

Which statement can you assume is TRUE?

  1. Maxwell and his spouse plan to itemize their deductions this year
  2. Maxwell and his spouse both work, or Maxwell himself has two jobs
  3. Maxwell and his spouse work at Big City Office Furniture
  4. Maxwell and his spouse are the owners of Big City Office Furniture

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

200

While you may not need to pay federal income taxes as a working teenager because you don't make enough, what types of federal taxes will you pay?

Social Security & Medicare

200

Lily uses a tax filing software that asks for her Employer’s Identification Number (EIN). What is it?

987654321

200

What tax information is NOT included on this W-2?

  1. Gross wages earned
  2. Federal income taxes she’s already paid
  3. State income taxes she’s already paid
  4. Income earned from her investments

Income earned from her investments

200

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

  1. His Social Security number
  2. His address
  3. The amount of taxes he’s paid in the last five years
  4. The number of dependents he plans to claim on his tax return

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

200

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

  1. Big City Office Furniture
  2. The IRS
  3. No one - he keeps it for his records
  4. His spouse

Big City Office Furniture

300

What are withholding taxes?

money that an employer deducts from an employee's gross wages and pays directly to the government

300

What were Lily’s gross wages from this employer for this period?

$17,780.00

300

What was the largest withholding on Lily’s W-2?

Federal income tax

300

If Maxwell had other income from interest or dividends which step might he want to complete on the W-4 form?

Step 4(a)

300

How much EXTRA money is Maxwell withholding from each paycheck?

$50

400

What is the difference between the standard deduction and itemized deductions?

The standard deduction is a specific dollar amount that reduces the amount of taxable income, while itemized deductions are made up of a list of eligible expenses.

400

Lily paid ______ in Social Security tax, which is _______ of her total wages.

$1,102.36; 6.2%

400

While filing, Lily finds out that her total federal income tax due was $318. Based on her federal income tax withheld, how much of a tax refund can she expect?

$1,282.20

400

Maxwell and his spouse file their taxes jointly and entered $4,000 on line 3. What does that tell you?

  1. Maxwell and his spouse make less than $400,000 and have zero children
  2. Maxwell and his spouse make less than $400,000 and have two children
  3. Maxwell and his spouse make more than $400,000 and have zero children
  4. Maxwell and his spouse make more than $400,000 and have two children

Maxwell and his spouse make less than $400,000 and have two children

400

How many dependents does Maxwell have?

2