FINE PRINT: W-2 Form

1. What do you know about Lily’s employment?

• Lily earned minimum wage plus tips
• Lily worked at Scoops Ice Cream in 2024
• Lily worked during every month of 2024
• Lily’s annual net pay (take-home pay) was $17,780 after taxes

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

• 123-45-6789
• 987654321
• 00122234001
• 1545-0008

3. What tax information is NOT included 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

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

• $1,102.36
• $1,600.20
• $17,780.00
• $20,220.67

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

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

6. 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 has a state income tax
• Lily’s taxable wages are much larger at the federal level than at the state or local level
• Lily earned less than $14,600 (which is the standard deduction amount)

7. While filing, Lily finds out that her total federal income tax due was $190. Based on her federal income tax withheld, how much of a tax refund can she expect?

• $318.00
• $1,282.20
• $1,600.20
• $2,642.37

8. Lily paid ​ ​ (a)   in Social Security tax, which is ​ (b)   of her total wages.

• $1102.36
• 6.2%
• 14.8%
• $257.81
• $17,780
• 2.4%

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

• $881.89
• $1,600.20
• $2,482.09
• $3,842.26

10. Based on her W-2, what state income tax rate did Lily pay?

• 339.60 / 17,780.00 = 1.91%
• 542.29 / 17,780.00 = 3.05%
• 1,102.36 / 17,780.00 = 6.20%
• 542.29 / 1,600.20 = 33.89%