The W-4 Form The W-4 form tells your employer the withholding rate for your pay. You must claim your filing status: single, married, or married but withhold.

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Presentation transcript:

The W-4 Form The W-4 form tells your employer the withholding rate for your pay. You must claim your filing status: single, married, or married but withhold at the higher single rate. If you want no taxes withheld, then claim yourself as a student. Otherwise, you can claim anywhere from 0 allowances to 15 allowances. The more allowances you claim, the less money is withheld..

Withholding Comparisons - $785 Per Week

The W-2 Form 2009 20-3035285 Apex, Inc 131 5th Avenue 101-33-1726 20-3035285 31,245.65 2,835.41 31,245.65 Apex, Inc 131 5th Avenue New York, NY 10021 1,937.23 31,245.65 453.06 Gary Gaines 127 West 18th Street Apt 3C New York, NY 10001 NY 20-3035285 31,245.65 1,047.22 31,245.65 944.73 NYC 2009

Filing Status Single (S) Unmarried at the end of the year and have no dependents. Head of Household (HH) Unmarried at the end of the year but have a dependent. Qualifying Widow (er) (QW) You were widowed in the previous 2 years, and have a dependent child. Married Filing Jointly (MFJ) Married at the end of the year and lived with your spouse. Married Filing Separately (MFS) Married at the end of the year and lived apart from your spouse.

The Basic Parts of a Tax Form Standard Deductions Gross Income Single 5,700 Married Filing Jointly 11,400 Separately 5,700 Head of Household 8,350 Qualifying Widow(er) 11,400 +/- Adjustments = Adjusted Gross Income (AGI) - Standard or Itemized Deduction 3,650 for each person on tax return. - Personal Exemptions = Taxable Income Tax Liability - Tax Payments Made = Refund or Amount Due

Federal Tax Liability Comparisons

Being a Dependent vs Not Being a Dependent Assume you get paid $250 a week, and you worked a total of 50 weeks during the year.