Taxes: W-2 Form Analysis
(266 Students)
Activity Description
In this worksheet, students will analyze a sample W-2 form to understand its various components and the information it provides about an employee's earnings and taxes paid. By reading the W-2 form and answering a series of questions, students will learn how to interpret this important tax document and understand its relevance in preparing tax returns.
Activities:
- Introduction to the W-2 Form: Students will receive an overview of the W-2 form, its purpose, and why it is important for employees and the IRS.
- Analyze Sample W-2 Form: Students will be provided with a sample W-2 form, including various sections that report different types of earnings and tax withholdings. Students will identify different sections of the W-2 form, such as Wages, Federal income tax withheld, Social Security, etc.
- Question and Answer: Students will answer a series of questions based on the information provided in the sample W-2 form.
This worksheet is designed to enhance students' financial literacy and tax knowledge, providing them with practical skills to interpret and use W-2 forms effectively.
Teacher Tips
Included with the activity, you can view the tips to clarify student's doubts or to evaluate answers (for a teacher scored worksheet).
Econ Ed -
Earning Income
Students will know that Earning
Income 12-6. Students will use this knowledge to Federal, state, and local taxes fund government-provided goods, services, and transfer payments to individuals .
The major types of taxes are income taxes, payroll taxes, property taxes, and sales taxes .
Econ Ed -
Earning Income
Students will know that The government provides income support and assistance for people who
qualify based on low income or other criteria .. Students will use this knowledge to 8-8a . Explain the financial situation addressed by Medicaid and SNAP (Supplemental Nutrition Assistance Program) .
8-8b . Give several examples of personal circumstances that qualify for government income support or assistance .
Econ Ed -
Earning Income
Students will know that People are required to pay taxes on most types of income, including wages, salaries, commissions, tips,
earnings on investments, and self-employment income .. Students will use this knowledge to 8-7a . Illustrate the relationship between income level and income tax paid .
8-7b . Describe how taxes are paid on tip income .
8-7c . Research the consequences of failing to pay income taxes .
Econ Ed -
Earning Income
Students will know that Social Security is a federal government program that taxes workers and employers to provide retirement,
disability, and survivor
income benefits for workers or their dependents .. Students will use this knowledge to 8-6a . Identify the different groups of people who qualify for Social Security benefits .
8-6b . Research the Social Security tax rate for someone who is self-employed vs . someone who is working for an employer .
8-6c . Given information on a worker’s income and today’s Social Security tax rates, calculate what the worker and the worker’s employer will pay in Social Security taxes .
8-6d . Investigate Social Security benefits for people of different income levels at their full retirement age .
Econ Ed -
Earning Income
Students will know that Most income is taxed by the government to pay for
government-provided goods and services .. Students will use this knowledge to 4-7a . Describe examples of government-provided goods and services that are paid for with taxes .
4-7b . Explain why citizens are required to contribute to the cost of fire protection, police, public libraries, and schools .
