U3L3 - The W-4

Where'd All My Money Go?

U3L3: The W-4

Multiple Select

1. Which of the following statements about the W-4 form is TRUE? (select all that apply)

• 1. The purpose of the form is to provide employees with reported wage and salary information

• 1. This form is given to employees every January

• 1. This form is given to employees on their first day on the job

• 1. The purpose of the form is to let employers know how much money to withhold from an employee's paycheck for taxes

Multiple Choice

1. Miguel has been working at his job for 3 years and already filled out a W-4 when he was first hired. This year, he just got married and is planning on filing his taxes jointly with his spouse. What should he do?

• 1. Email his HR department that they need to update his W-4

• 1. Keep the same information on his W-4

• 1. Request to fill out a new W-4 from his employer

• 1. Wait until next April to fill out a new W-4

Multiple Choice

1. You will need to include all of the following information on a W-4 form EXCEPT…

• 1. Name and address

• 1. Earned income from previous job

• 1. Social Security number

• 1. Marital status

Analyze the W-4, then answer the questions on the following slides.

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Read the Fine Print: W-4

Multiple Choice

What is Maxwell's filing status?

• Single

• Married filing jointly

• Head of household

• Dependent

Multiple Choice

2. Based on the information provided on this W-4 form, which statement can you assume is TRUE?

• 1. Maxwell and his spouse are planning to itemize their deductions this year

• 1. Maxwell and his spouse both work, or Maxwell himself has two jobs

• 1. Maxwell and his spouse both work at Big City Office Furniture

• 1. Maxwell and his spouse are the owners of Big City Office Furniture

Multiple Choice

2. In order to fill out this W-4 form, Maxwell needed to know all of this information EXCEPT…

• 1. His Social Security number

• 1. His address

• 1. The amount of taxes he’s paid in the last five years

• 1. The number of dependents he plans to claim on his tax return

Multiple Choice

2. Assume that Maxwell and his spouse anticipate earning around $110,000 in combined income this year. Given how he’s completed this W-4 form, how many children under the age of 17 does Maxwell have?

• 1. 1

• 1. 2

• 1. 3

• 1. 4

Multiple Choice

2. Given how he’s completed this W-4 form, how many other dependents does Maxwell have?

• 1. 0

• 1. 1

• 1. 2

• 1. 3

Multiple Choice

2. If Maxwell and his spouse were to have another child, but all other aspects of their life stayed the same, which entries on a new W-4 form would he need to change?

• 1. No need to change the form

• 1. Step 2

• 1. Step 3

• 1. Step 4

Multiple Choice

2. In June, Maxwell’s father comes to live in their home and can count as Maxwell’s dependent. What steps does Maxwell need to take next?

• 1. There are no steps Maxwell needs to take

• 1. Submit a new W-4, claiming $500 more in Box 3

• 1. Submit a new W-4, claiming $2000 more in Box 3

• 1. Verbally tell the HR department at Big City Office Furniture

Multiple Choice

2. 
   How much EXTRA money is Maxwell having held from each paycheck?

• 1. $0

• $10

• 1. $50

• 1. Cannot tell from this form

Multiple Choice

2. 
   A W-4 form is given to you by your employer to complete for that specific job. Which statement below is TRUE?

• 1. Maxwell started working at this job during the 2021 tax year

• 1. Maxwell submitted the W-4 a few days after he started

• 1. Maxwell lives and works in the same city

• 1. Maxwell completed this W-4 for his job at Big City Office Furniture

Multiple Choice

2. 
   When Maxwell completes this W-4, who should he submit it to?

• 1. Big City Office Furniture

• 1. The IRS

• 1. No one - he keeps it for his records

• 1. His spouse

Open Ended

11. Why is it extremely important to read the fine print of your W-4 form?