Module 4 — The W-2 Worker
Module 4 Downloads & Resources
Your Module 4 study materials. Keep these at your desk during tax season.
W-2 Box Reference Card
Every W-2 box explained in one printable card. Box 1 through Box 20. Box 12 codes included. Keep it next to your keyboard.
Box 12 Code Quick Reference
The codes you will see most often: D, DD, W, C, AA, BB, E, G, S. What each means, whether it affects the return, and what form it may trigger.
W-2 Client Intake Checklist
The eight intake questions every preparer should ask before opening the software. Print and use at every appointment.
Withholding Explanation One-Pager
Plain-English explanation of why clients owe when they work multiple jobs and how bonuses create withholding gaps. Use this with frustrated clients.
2025 Employer Benefit Limits Reference
401(k) limit $23,500 / catch-up $31,000. HSA self-only $4,300 / family $8,550 / age 55+ extra $1,000. SS wage base $176,100. One card, all the numbers.
Module 4 Study Guide Summary
Complete summary of all 7 lessons. Key concepts, character scenarios, and the most important preparer questions for W-2 returns. Great for review before the quiz.
Module 4 Summary — What You Learned
📚
Module 4 Key Takeaways
Lesson 1: Read every W-2 box, every time. Box 1, Box 2, Box 12, Box 13, Box 14, and the state section. Thirty seconds of reading catches problems that would take hours to fix.
Lesson 2: Multiple W-2s require separate entry for each employer. Combined income can push clients into higher brackets than either employer planned for — the most common reason for unexpected balances due.
Lesson 3: Code D is pre-tax 401(k). Code DD is health insurance — informational only. Code W triggers Form 8889. Code AA is after-tax Roth. Know which ones change the return and which ones don’t.
Lesson 4: Bonuses are taxed as ordinary income. The flat 22% withholding rate on supplemental wages is not the tax rate — it’s a withholding method. The gap between withholding rate and marginal rate creates the balance due clients complain about.
Lesson 5: Benefits leave traces on the W-2. Box 10 (Dependent Care FSA) needs Form 2441. Code W needs Form 8889. Box 13 checked means verify IRA deductibility. Read the entire W-2 before you make any assumptions.
Lesson 6: Florida has no state income tax. Boxes 16-17 are blank for local clients. When they have amounts, ask questions before entering. Boxes 18-20 signal a local tax jurisdiction.
Lesson 7: Every return follows the same sequence: intake, document review, filing status, entry, verification, presentation. Estimate the result before you enter. Know your numbers before you turn the screen.
Lesson 2: Multiple W-2s require separate entry for each employer. Combined income can push clients into higher brackets than either employer planned for — the most common reason for unexpected balances due.
Lesson 3: Code D is pre-tax 401(k). Code DD is health insurance — informational only. Code W triggers Form 8889. Code AA is after-tax Roth. Know which ones change the return and which ones don’t.
Lesson 4: Bonuses are taxed as ordinary income. The flat 22% withholding rate on supplemental wages is not the tax rate — it’s a withholding method. The gap between withholding rate and marginal rate creates the balance due clients complain about.
Lesson 5: Benefits leave traces on the W-2. Box 10 (Dependent Care FSA) needs Form 2441. Code W needs Form 8889. Box 13 checked means verify IRA deductibility. Read the entire W-2 before you make any assumptions.
Lesson 6: Florida has no state income tax. Boxes 16-17 are blank for local clients. When they have amounts, ask questions before entering. Boxes 18-20 signal a local tax jurisdiction.
Lesson 7: Every return follows the same sequence: intake, document review, filing status, entry, verification, presentation. Estimate the result before you enter. Know your numbers before you turn the screen.
📋 Ralph Martinez — After Module 4
You now know how to handle the most common return type in any tax office. A W-2 worker is Anthony. It’s the Garcias. It’s Rita at her part-time job. Most of the people who walk through your door in the first three months of tax season have a W-2 and not much else. You know how to read it, what to ask, and how to build the return from intake to signature. That is a real skill. The next modules build on it. But this one is the foundation.
— Ralph Martinez · Ruskin, FL · Est. 2001