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Understanding the W-4 Form: A Guide for Employees

The W-4 form is a crucial document for employees, indicating how much federal tax should be withheld from their paychecks. This one-page form consists of three main sections: definitions, a worksheet to help determine your withholding number, and the submission portion. Whether you're single, married, or have children, the form helps you arrive at a number that optimizes your tax withholding. This guide walks you through each step of completing the W-4, ensuring you understand the implications of your choices on your tax return.

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Understanding the W-4 Form: A Guide for Employees

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  1. The W-4 Form Virtual Enterprise Mr. Hayes

  2. What is a W-4? • This is a document you fill out for work. • It lets your employer/boss know how much money to take out for taxes each paycheck.

  3. What is a W-4? • Only one page. • Broken into three parts. • Top = Definitions • Middle = Worksheet to help you figure out what number to put down • Bottom = What you fill out and turn in to your boss.

  4. What is a W-4? • You can skip the top part, as I will explain the form to you. • Start in the middle. • All you need to do is write down numbers. • For this example, you are living on your own, and can be single, married, or with kids. Your choice. • Let’s begin.

  5. What is a W-4? • The idea is to come up with the magic number. • The higher the number, the less they will take out. • The lower the number, 0 or a 1, the more they will take out.

  6. Filling it out… • Always enter 1 for yourself, if your parents do not claim you. So, put a “1” on the line. • Enter 1 on the line, if you are single and have only one job or married and your spouse (husband or wife) does not work. • Enter “0” if single. Enter “1” if married.

  7. Filling it out… • Enter “0” if no children. If you do have kids, enter the number you have. • Enter “1” only if you are single and make more than 50% of the money in your house and have someone you are taking care of. • Enter “1” only if you pay a lot for child care.

  8. Filling it out… • To make this one simple, you can enter “1” for your children, up to about “3” if you have many. • Add up all of the above lines and enter the total on line H. • Now, go to the bottom section.

  9. The bottom… • This is the form you actually turn in. • You can cut this off from the rest before giving to your boss. • Fill all info out. • On line #5 (important), put the number you came up with on line H above. • You can skip 6 and 7. • Sign and Date.

  10. All finished… • You’re done. • Turn in to your employer. • They use that number to calculate how much $ to take out. • You can actually put any number you want, but it might hurt you during tax time.

  11. Which is better? • Mr. Whiddon puts down “6”. His Adjusted Gross Income is $50,000 a year and his boss takes out a total of $7,000 for withholding. • The IRS wants $8,631 from him. How much does he owe in April? • Ms. Stratton puts down “2”. She makes $50,000 a year and her boss takes out a total of $9,000. • The IRS wants $8,631 from her. How much does she get back from the IRS?

  12. THE END Fill out your W-4 and turn in.

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