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

2023
Views:

116

Pages:

3
Author:

Vivian Bernard

FINE PRINT: W-4 Form Teacher Tip: If you prefer to administer this activity using a Google Form, please see the answer key for the Google form link. You can find this on the Unit Page this resource is in. 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. 1. What is Maxwell’s filing status? a. Single b. Married filing jointly c. Head of household d. Dependent 2. Based on the information provided on this W-4 form, which statement can you assume is TRUE? a. Maxwell and his spouse are planning to itemize their deductions this year b. Maxwell and his spouse both work, or Maxwell himself has two jobs c. Maxwell and his spouse both work at Big City Office Furniture d. Maxwell and his spouse are the owners of Big City Office Furniture 3. 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 4. 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? a. 1 b. 2 c. 3 d. 4 5. Given how he’s completed this W-4 form, how many other dependents does Maxwell have? a. 0 b. 1 c. 2 d. 3 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. No need to change the form b. Step 2 c. Step 3 d. 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. There are no steps Maxwell needs to take b. Submit a new W-4, claiming $500 more in Box 3 c. Submit a new W-4, claiming $2000 more in Box 3 d. 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 TRUE? a. Maxwell started working at this job during the 2021 tax year b. Maxwell submitted the W-4 a few days after he started c. Maxwell lives and works in the same city d. Maxwell completed this W-4 for his job at Big City Office Furniture 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. 11. Why is it extremely important to read the fine print of your W-4 form? Why is it extremely important to read the fine print of your W-4? So that you can get all the details of your job and also make sure that you are withholding the correct amounts. You need to fill it all out to make sure that you are being paid correctly.