Understanding W-4 and W-2 Forms

What amendment to the Constitution introduced income taxes?

• 18th Amendment

• 17th Amendment

• 16th Amendment

• 15th Amendment

What is the primary purpose of the W-4 form?

• To report annual earnings to the IRS

• To determine federal income tax withholding

• To file state income taxes

• To calculate Social Security taxes

Which step on the W-4 form should you skip if you have no dependents?

• Step 1

• Step 2

• Step 3

• Step 4

What information does the W-2 form provide?

• Your state tax obligations

• Your earnings and tax withholdings

• Your tax refund amount

• Your total annual income

Which box on the W-2 form shows your taxable income?

• Box 1

• Box 4

• Box 3

• Box 2

What percentage of your earnings is withheld for Social Security tax?

• 12.4%

• 10%

• 6.2%

• 1.45%

Which box on the W-2 form shows the amount of Medicare taxes withheld?

• Box 6

• Box 5

• Box 7

• Box 4

In which box would you find your state income tax withheld on the W-2 form?

• Box 15

• Box 18

• Box 16

• Box 17

What does a large tax refund indicate?

• You overpaid your taxes

• You paid the correct amount of taxes

• You have unpaid state taxes

• You underpaid your taxes

What should you do if you consistently receive a large tax refund?

• File a new W-2 form

• Increase your retirement contributions

• Adjust your W-4 withholdings

• Ignore it