5.5 Exploration of a W-2 Form and Starting Your Taxes Due (2/1/23)
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Students will be able to
Distinguish between common IRS forms and determine when and how each form is used in the tax cycle
Carefully read the details of a W-2 form
Understand the factors that determine whether or not someone has to file a tax return
Explain what a dependent is and establish if they can be claimed as a dependent by someone else on their tax return
Determine whether someone has to file a tax return based on their specific situation
While you are given a blank W-4 and must complete it yourself, the W-2 form is provided TO you with all information already completed. Watch this video to learn more
All of the following people should receive W-2 Forms EXCEPT…
This form will be sent to Lily by the end of January. She will use this W-2 form to...
As Lily is completing her 1040 form, what piece of information will she find on a different document rather than on this W-2?
All of the following employee information is included on a W-2 form EXCEPT...
What were Lily’s gross wages for this period?
Based on the W-2 form provided, what was the largest withholding? (What is the largest deduction?)
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?
Based on the W-2 provided, the Social Security tax withheld for Lily was
Based on the W-2 provided, Lily paid Indiana a state income tax rate of ...
Remember that percentages are calculated by:
so for this problem:
What is the purpose of a W-2 form?
If you made the rules, how much money do you think someone should make before they have to pay income taxes? Explain your reasoning.
How do you know if you have to file a tax return? Watch this video to learn about the factors that determine if you have to file. Then, answer the questions.
The four requirements used to determine if you have to file a tax return are listed below.
Fill out the information for yourself next to each requirement if you know it. If you don’t know it, write “need more information”.
Age:
Filing Status:
Dependency status (Can someone claim you as a dependent on their tax return?):
Annual Gross Income:
Why might it be beneficial to file a tax return even if you don’t meet the requirements to file?
True or False: The federal government will reach out to you if you are owed a refund.
In the previous video, you found out that your dependency status impacts how you file a tax return. Read this article and stop once you’ve finished reading the Are there special rules for claiming a child as a dependent? section. Then, answer the questions.
In your own words, explain what a dependent is.
Can someone else claim YOU as a dependent?
Jesse is a full-time college student and is 20 years old. Can he be claimed as a dependent? Explain.
Most people don’t know that there are actually two types of income - earned and unearned - and each is taxed differently! Review this reference slide then answer the questions.
In your own words, explain what the main differences are between earned and unearned income.
Do YOU currently have earned or unearned income? Where do you get this money from?
What types of earned and unearned income do you think you’ll have in 10 years?
Let’s learn more about what the income requirements are to file a tax return. Read through this slide that breaks the income requirements down based on your dependency status, filing status, and age.
Using these requirements, do you need to file a tax return this year? Why or why not?
As a teen, filing a tax return can be a mostly straight-forward process. However, you may be wondering how that process changes if someone claims you as a dependent or if you are a self-employed worker or household employee. Read through this reference to learn more about what to do in these scenarios. Then, answer the questions.
Which of the following people is/are legally required to file a tax return?
Amanda, who can be claimed as a dependent and earned $850 last year.
Greg, who can be claimed as a dependent and earned $13,200 last year.
Jason, who cannot be claimed as a dependent and earned $1,500 last year.
Erin, who cannot be claimed as a dependent and earned $14,000 last year.
The article mentions that if you are owed a refund from the IRS, you won’t be penalized if you file your tax return late.
However, why might you want to file your tax return on time?
When filling out a W-4 form, in what situation would a teen want to claim exemption from federal income taxes being withheld from their paycheck? What is the benefit of doing so?
Tim is 16 years old, a high school student, and lives with his parents. He earned $5,200 at his part-time job.
Can this person be claimed as a dependent?
Is this person legally required to file a tax return? Why or why not?
Should they file a tax return? Explain your reasoning.
Jessica is 24 years old and lives in her own apartment. She earned $48,000 from her salaried position last year.
Can this person be claimed as a dependent?
Is this person legally required to file a tax return? Why or why not?
Should they file a tax return? Explain your reasoning.
In which box on your W-2 can you find your...
A) Wages and Income
B) Taxes Withheld?
When should you receive your W-2 form from your employer?
What is the income threshold for self-employed workers to file a return?
Mason is 17 years old, a junior in high school, and lives with his parents. He had unearned income of $750.
Can this person be claimed as a dependent?
Is this person legally required to file a tax return? Why or why not?
Should they file a tax return? Explain your reasoning.
Kathryn is 15 years old, a sophomore in high school, and lives with her parents. She had $200 in unearned income and earned $1,200 from her part-time job.
Can this person be claimed as a dependent?
Is this person legally required to file a tax return? Why or why not?
Should they file a tax return? Explain your reasoning.
Yanely is 18 years old, is a high school senior, and lives with her parents. She earned $6,300 from her part-time job. She claimed EXEMPT on her W-4 on her first day of work.
Can this person be claimed as a dependent?
Is this person legally required to file a tax return? Why or why not?
Should they file a tax return? Explain your reasoning.
