1. YOUR WITHHOLDING TAX How to Complete a W-4 Form Jane Wells TST - BOCES

2. 2 WHAT DO YOU KNOW ALREADY? A W-4 pre-test… What is a W-4 form and why is it important? Where can I find a W-4 form? How do I complete a W-4 form? How do I figure how many allowances to claim?

3. 3 What is a W-4 form? It’s a way to tell your employer how much pay you want withheld for your income tax.

4. 4 Why is a W-4 form important? Make sure that you complete a W-4 form because, if not… You will not be legally employed You will not be covered by Workman’s Compensation

5. 5 Where can I find a W-4 form? From your employer OR…

6. 6 Where can I find a W-4 form? …download one from the IRS website… http://www.irs.gov/

7. 7 How do I complete a W-4 form? Follow these easy directions…

8. 8 Complete lines 1 & 2… Provide your name, address, and Social Security number…

9. 9 Complete line 3… Check box for marital status

10. 10 Complete lines 5 & 6… Insert the number of dependents you will claim. BUT… If you are under 18 and you are already claimed by another person, you must claim “0”

11. 11 How do I figure how many allowances to claim? Next, complete the Personal Allowances Worksheet It’s on the same page as the W-4

12. 12 How do I figure how many allowances to claim? Complete lines A through G…

13. 13 How do I figure how many allowances to claim? Now add the number of dependents you have claimed and write the total on line H…

14. 14 How do I figure how many allowances to claim? You will probably claim either a ‘0’ or ‘1’ AND… with “0”, the highest amount will be withheld

15. 15 – but you will get $ back later…!

16. 16 Am I EXEMPT from paying taxes? You cannot claim exemption from withholding if: (a) your yearly income exceeds $850 and includes more than $300 of unearned income (for example, interest and dividends,) and (b) another person can claim you as a dependent on their tax return. NO

17. 17 If you are ‘exempt’ from paying taxes… Skip lines 5 & 6, complete line 7!! If you earn less than $850 in the year and you have less that $300 of unearned income from interest, and no one can claim you as a dependent on their tax return, then……. YOU ARE EXEMPT… So, skip lines 5 and 6 and write “EXEMPT” on line 7. YES

18. 18 Don’t forget to… Print, sign, and date the form…

19. 19 You are done ! Give the completed W-4 form to your employer. Your employer will complete lines 8, 9, 10.

20. 20 NOW WHAT DO YOU KNOW? Turn to a partner and explain… What is a W-4 form and why is it important? Where can I find a W-4 form? How do I complete a W-4 form? How do I figure how many allowances to claim?

21. 21 Your homework assignment… 1. Go to http://www.irs.gov/http://www.irs.gov/ 2. Download a W-4 form. 3. Complete the W-4 form. 4. Submit completed form to your teacher for a grade!