W-2 Forms

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?

• 1. 123-45-6789

• 1. 987654321

• 1. 00122234001

• 1. 1545-0008

3. What tax information is NOT included on this W-2?

• 1. Gross wages earned

• 1. Federal income taxes she’s already paid

• 1. State income taxes she’s already paid

• 1. Income earned from her investments

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

• 1. $1,102.36

• 1. $1,600.20

• 1. $17,780.00

• 1. $20,220.67

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

• 1. Medicare tax

• 1. Federal income tax

• 1. State income tax

• 1. Social security tax

6. Based on this W-2, which of the following statements is TRUE?

• 1. Lily is contributing to a 401(k) retirement through her employer

• 1. Lily works in the state of Indiana, which has a state income tax

• 1. Lily’s taxable wages are much larger at the federal level than at the state or local level

• 1. 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 $318. Based on her federal income tax withheld, how much of a tax refund can she expect?

• 1. $318.00

• 1. $1,282.20

• 1. $1,600.20

• 1. $2,642.37

8. Lily paid ______ in Social Security tax, which is _______ of her total wages.

• 1. $257.81

  3. 1.45%

• 1. $257.81

  3. 6.2%

• 1. $1,102.36

  3. 6.2%

• 1. $1,102.36

  1.45%

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

• 1. $881.89

• 1. $1,600.20

• 1. $2,482.09

• 1. $3,842.26

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

• 1. 339.60 / 17,780.00 = 1.91%

• 1. 542.29 / 17,780.00 = 3.05%

• 1. 1,102.36 / 17,780.00 = 6.20%

• 1. 542.29  / 1,600.20 = 33.89%