University:
Appalachian State University
Course:
FIN 5500 | Independent Study
Academic year:

2022
Views:

297

Pages:

3
Author:

Lance Gutierrez

FINE PRINT: W-4 Form In this activity, you will explore a W-4 in more detail to understand its various components. Then, you will answer questions using the sample W-4 below. Part I: Read The Fine Print Analyze this sample W-4 and answer the questions that follow. Highlight your answers. 1. What is Maxwell’s filing status? a. Single b. Married filing jointly c. Head of household d. Dependent 2. Which statement below is TRUE, based on this W-4 form? a. Maxwell and his spouse are planning to itemize their deductions this year b. Maxwell and his spouse have similar salaries but Maxwell earns a little more c. Maxwell and his spouse both work at Big City Office Furniture d. Maxwell works; his spouse does not 3. Which of the following is TRUE based on how Maxwell has filled out this W-4? a. Maxwell’s spouse does not need to fill out a W-4. b. Maxwell’s spouse should fill out a W-4 but should not complete Steps 3-4b. c. Maxwell’s spouse should fill out a W-4 and should also complete Steps 3-4b. d. Maxwell’s spouse should fill out a W-4 but leave the box in Step 2c unchecked. 4. In order to fill out this W-4 form, Maxwell needed to know all of this information EXCEPT… a. His Social Security number b. His address c. The amount of taxes he’s paid in the last five years d. The number of dependents he plans to claim on his tax return 5. Assume that Maxwell and his spouse anticipate earning around $110,000 in combined income during 2021. Given how he’s completed this W-4 form, how many children do Maxwell and his spouse share? a. b. c. d. 1 2 3 4 6. 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? a. b. c. d. No need to change the form Step 2 Step 3 Step 4 7. 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? a. b. c. d. There are no steps Maxwell needs to take Submit a new W-4, claiming $500 more in Box 3 Submit a new W-4, claiming $2000 more in Box 3 Verbally tell the HR department at Big City Office Furniture 8. How much EXTRA money is Maxwell having held from each paycheck? a. $0 b. $10 c. $50 d. Cannot tell from this form 9. A W-4 form is given to you by your employer to complete for that specific job. Which statement below is definitely TRUE? a. He started working at this job during the 2019 tax year b. He submitted the W-4 a few days after he started c. He completed this W-4 for his job at Big City Office Furniture d. He lives and works in the same city 10. When Maxwell completes this W-4, who should he submit it to? a. Big City Office Furniture b. The IRS c. No one - he keeps it for his records d. His spouse Part II: What Did You Learn? Use what you learned from analyzing the W-4 to answer this question. Use complete sentences and pay attention to grammar and spelling. 11. Why is it extremely important to read the fine print of your W-4 form?