Suggested Money Lesson Plan
for this Tax Worksheet
Give an introductory lesson about paying taxes to
Print and hand out the W-4 form to the students and ask
if anyone has ever seen a W-4 form?
When do we get a W-4 form? (for new employment,
starting a new job)
What is done with the W-4 once it is filled out?
(you cut off the bottom half of the page and give it to your
What is the purpose of the W-4 form? (it tells
the employer how much money to withhold for taxes from the
Explain to them each of the lines on the form. Also
some terms such as IRS, W-4, Gross Income, deductions, etc.
Fill in a sample W4 form with the students.
It is important that the information be filled in is accurate.
For this exercise, make the simple assumptions that everyone is single and no one else
may claim them as a dependent.
The more exemptions that are claimed, the less
money that is withheld. You may claim exemptions for yourself,
your spouse, your children, and any other dependents.
Other deductions include the earned income
credit, and other credits.
Once you have stepped through a W-4, print out
the worksheet below and allow each student to fill in their own W-4
using the information provided in the worksheet.
If there is any event that causes information on
the form to be obsolete, then you should file a new W-4 with your
employer (for example, having children).
If you don't claim enough exemptions, you run the
risk of being responsible for tax penalties. Normally, 90% of
your taxes due need to be withheld during the year.
If you think you are going to be responsible for
paying more taxes in a given year, you can use the W-4 form to
increase the amount of money your employer holds for taxes, so you
don't have to make additional payments during the year.