Distribute to Students
Distribute to Students
Distribute to Students
Review the chart and use the space below to answer the prompt.
25% of people reported filing their federal taxes for free. Do you think this number should be higher? Lower? Or does it seem about right? Explain your answer.
What do you need to file your taxes? Review this handy list of items you will need to fill out the 1040 form. Check off the items you’re confident you will have ready. Take note of any items you’re unsure or have any questions about.
After reviewing this checklist, how do you plan on keeping your important tax documents organized at home?
What can you do if you are missing any documents?
Is there anything on this list you are unsure of or have any questions about?
Once you’ve gathered everything you’ll need, you have a few different options to choose from in how to prepare and submit your taxes. Watch this video to learn more about the three most commonly used options. Then, answer the questions.
Tip: The video lists the pros of all three options but only lists cons for paper filing. You will have to brainstorm cons for the other two options on your own.
The W-2 form contains some of the most crucial information you’ll need to prepare your taxes. Watch this video to learn why it’s so important. Then, answer the questions.
All of the following people should receive W-2 forms EXCEPT…
Edgar, who works 10 hours/week cleaning pools for $15/hour at WeCleanPools
Melinda, who works 40 hours/week at a local ice cream shop during the summer
Marcus, who is on salary as a sales representative at a shoe store, working full-time
Serena, who is a freelance wedding photographer
ARTICLE: State Income Tax Rates: What They Are and How They Work
In the previous resources you’ve learned that in addition to federal income taxes, states can also withhold income taxes from your earnings. Review the article to learn more about how different states handle income taxes. Then, answer the questions.
Which states have no income taxes at all? (7)
What is the difference between a flat tax rate and progressive tax rate?
INFOGRAPHIC: Progressive, Regressive, or Proportional?
One way to categorize taxes is by the impact they have on people with different incomes. Review the infographic to learn the three basic categories, then answer the questions. Note: a proportional tax is sometimes also called a flat tax.
INTERACTIVE: International Tax Rates
Now that you’ve learned more about the taxes we pay in the U.S., see how that compares to tax rates internationally. Explore the interactive and answer the questions.
Which country has the highest tax rate? What is it?
Identify at least one other country with a similar tax rate as the United States.
If you’re looking to pay as little as possible to file your taxes BUT you’re worried about making mistakes, which tax preparation method would be your best option?
All of the following are found on a W-2 form EXCEPT…
Wages, tips, and other compensation
Federal and state taxes withheld
Sales taxes paid
FICA taxes withheld
Which of the following is the term for a tax rate that increases at higher levels of income?
FICA tax
Sales tax
Flat tax
Progressive tax
What are two important items detailed in your W-2 form? (select two correct answers)
Wages, tips, and other compensation
Number of dependents you will claim
Federal and state taxes withheld from your earnings
Additional money you want withheld from your paycheck
When should you receive your W-2 form from your employer?
Attached to every pay stub
By January 1
By January 31
By April 15
Now that you know why it’s so important, let’s take a look at a sample W-2 form in more detail so you can be more confident when the time comes to prepare your own taxes. Follow the directions on the worksheet to complete this activity.
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 $14,450 after taxes
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
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
What were Lily’s gross wages from this employer for this period?
$895.90
$1,080.50
$14,450
$16,635.92
What was the largest withholding on Lily’s W-2?
Medicare tax
Federal income tax
State income tax
Social security tax
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 more than $14,600 (which is the standard deduction amount)
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?
$190.00
$890.50
$1,080.50
$13,369.50
Lily paid ______ in Social Security tax, which is _______ of her total wages.
$209.52; 1.45%
$209.52; 6.2%
$895.90; 6.2%
$895.90; 1.45%
What was the total amount deducted from Lily’s pay for Federal, State, and Local income tax?
$1,080.50
$1,755.32
$2,185.92
$2,886.75
Based on her W-2, what state income tax rate did Lily pay?
234.09 / 14,450.00 = 1.62%
440.73 / 14,450.00 = 3.05%
895.90 / 14,450.00 = 6.20%
440.73 / 1080.50 = 40.79%
What is the purpose of a W-2 form?
