FINE PRINT: W-2 Form

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

• Obtain employment
• Receive her paycheck
• File her income taxes
• Begin her retirement savings

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

• Gross Wages earned
• Federal income taxes she’s already paid
• State income taxes she’s already paid
• Income earned from her investments

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

• Employer name and EIN (Employer Identification Number)
• Employee’s Social Security number
• Employee's date of birth
• Employee's current address

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

• Lily is contributing to a 401(k) retirement through her employer
• Lily works in the state of Indiana, which does not have an income tax
• Lily’s taxable wages are much larger at the federal level than at the state or local level
• Lily earned more than $12,950 (which is the standard deduction amount)

5. What were Lily’s gross wages for this period?

• $1,722.44
• $2,480.17
• $14,450
• $16,172.44

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

• Medicare tax
• Federal income tax
• State income tax
• Social security tax

7. 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?

• $190.00
• $890.50
• $1,080.50
• $13,369.50

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

• 1.3%, 5.5%
• 6.2%, 1.45%
• 10%, 10%
• 28%, 39.8%

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

• $1,314.59
• $1,547.24
• $1,781.33
• $2,886.75

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

• 1.2%
• 2.9%
• 3.2%
• 4.6%