W-4, W-2, and Filing a Simple Tax Return
Aligned to JS:EI-6 — Jump$tart National Standards in K-12 Personal Finance Education & Advance CTE Career Clusters.
What this lesson teaches
A W-4 is what you give your employer when hired; it tells them how much tax to withhold. A W-2 is what they give you in January; it reports what you earned and what was already withheld. A tax return compares the two and settles the difference — a refund means you overpaid all year.
Worked examples
Example 1
You earned $9,400 and had $480 withheld. Your actual tax owed is $180, so you file and get a $300 refund — your own money, returned without interest.
Example 2
A big refund is not a win. It means you loaned the government money interest-free all year; adjusting your W-4 puts that money in your paychecks instead.
Example 3
Keep your W-2s and returns for at least three years. They are what you need to apply for a loan, an apartment, or financial aid.
Practice questions
- Explain the difference between a W-4 and a W-2 in your own words.
- You owed $600 and $750 was withheld. Refund or bill, and how much?
- Why is a very large refund not necessarily good news?
Watch the lesson
Every lesson comes with a video taught in English and Spanish — the same video the QR code in the printed workbook opens.
▶ Watch this lessonEn español
W-4, W-2 y presentar una declaración sencilla
El W-4 es lo que le das a tu empleador al ser contratado; le dice cuánto impuesto retener. El W-2 es lo que él te da en enero; reporta lo que ganaste y lo que ya te retuvieron. Una declaración compara los dos y salda la diferencia — un reembolso significa que pagaste de más todo el año.
Ejemplo 1: Ganaste $9,400 y te retuvieron $480. El impuesto que realmente debes es $180, así que declaras y recibes $300 de reembolso — tu propio dinero, devuelto sin intereses.
Ejemplo 2: Un reembolso grande no es un triunfo. Significa que le prestaste dinero al gobierno sin intereses todo el año; ajustar tu W-4 pone ese dinero en tus cheques.
Ejemplo 3: Guarda tus W-2 y declaraciones al menos tres años. Son lo que necesitas para pedir un préstamo, un departamento o ayuda financiera.
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