0
Want this question answered?
Be notified when an answer is posted
Add your answer:
Earn +20 pts
Should you choose 0 or 1 for exemptions on your income tax forms?
Form W-4 is Employee's Withholding Allowance Certificate. You enter the number of your exemptions on Form W-4. The Personal Allowances Worksheet guides you to take an accurate number of exemptions. If you (and/or your spouse) are working at more than one job, you might claim 0 allowances to make sure enough tax is withheld on your earnings. Also, if you have a large amount of nonwage income (interest, dividends, etc.), either claim 0 exemptions or arrange to make estimated tax payments using Form 1040-ES (Estimated Tax for Individuals). For more information, go online to print Publication 505 (Tax Withholding and Estimated Tax) at www.irs.gov.
The amount withheld for federal tax depends on the gross salary and the number of exemptions true or false?
False. The amount of income tax withheld depends on gross salary, filing status (single or married), and the number of withholding allowances claimed on Form W-4. Form W-4 is a form the employee fills out and gives to the employer. You claim withholding allowances on Form W-4, not exemptions. Many people mistakenly believe that you claim exemptions on Form W-4 which is why most people have far too much withheld. Exemptions are just one factor in determining how many withholding allowances you are allowed to claim. See the worksheet that is in the W-4 instructions or use the IRS calculator here: http://www.irs.gov/individuals/article/0,,id=96196,00.html The amount of Social Security and Medicare tax withheld depends only on gross salary. Also remember that the amount withheld is not the actual amount of tax you owe. The actual amount you owe is calculated when you fill out Form 1040 at the end of the year. When you file Form 1040, you get a refund if too much was withheld or you have to pay extra if not enough was withheld.
Why do you fill out a w-4?
Why: IRS tax forms are used by taxpayers and tax-exempt organizations to report financial information to the Internal Revenue Service (IRS) of the United States. They are used to report income and calculate taxes to be paid to the federal government of the United States.How: First, provide your name, address, and Social Security Number.Second, check the box for married or single, depending on your marital status.Third, calculate how many withholding allowances to claim. For most people, this is the same as the number of personal exemptions they claim on their tax return (see Line 6d on your 1040A or 1040).Fourth, if you have more than one job, if your spouse works, or if you itemize your deductions, use the worksheet on Form W-4 page 2. Use this worksheet to calculate the number of allowances to claim instead of relying on your personal exemptions.Fifth, you can also use the IRS Withholding Calculator to calculate your withholding allowances more exactly.Sixth, if you have more than one job, make sure you claim zero allowances at your second job. Claiming "exempt" is NOT the same as claiming zero. By claiming zero, the highest amount of tax will be withheld.Seventh, if you claim more than 9 allowances, your employer may be required to send your W-4 to the IRS for review. Don't be alarmed. People with incomes over $100,000 and with substantial itemized deductions may need to claim over nine allowances.Eigth, you are exempt from income tax withholding only if your income for the year will be less than $800. If you are exempt, skip lines 5 and 6, and write "EXEMPT" on line 7. Ninth, print, sign, and date the form.Finally, give the W-4 to your employer. They will fill out lines 8, 9, and 10.
What should you claim as deductions on your W 2 form?
Form W-2 is Wage and Tax Statement. It's an IRS form that employers are required to provide/send to their employees for the employees to use in filing their tax returns. You don't claim deductions with your W-2 form.Form W-4 is Employee's Withholding Allowance. It's an IRS form that your employer has you fill out when you're hired. Your employer calculates withholdings from your earnings based upon the filing status and number of exemptions that you claim on Form W-4. The more exemptions you claim, the less will be withheld from your earnings.A single person can claim one personal exemption plus an additional exemption if only having one job. If you (or your spouse) have more than one job, then you might want to claim less exemptions to make sure that enough is withheld from your earnings. You can claim exemptions for dependents, if any.If you have a significant amount of unearned income (interest, dividends, capital gains, etc.) or self-employment income, claim fewer exemptions. If you're expecting certain credits (earned income, child and dependent care, etc.), claim more exemptions.Also included with Form W-4 is a Personal Allowances Worksheet plus Deductions and Adjustments Worksheet and Two-Earners/Multiple Jobs Worksheet. These Worksheets all help you determine the number of allowable exemptions for Form W-4.You can finetune your withholding with the IRS withholding calculator onlne at www.irs.gov. Select Too Much or Too Little Tax Withheld in the Special Interest Section in the middle column.For more information, go online to www.irs.gov/taxtopics. Select Topic 753 (Form W-4 Employee's Withholding Allowance Certificate).Also, for Publication 919 (How do I Adjust my Tax Withholding?), go to www.irs.gov/formspubs. Select Publication Number. Type 919 in the Find bar.
What should you claim as deductions on your W-2 form?
Form W-2 is Wage and Tax Statement. It's an IRS form that employers are required to provide/send to their employees for the employees to use in filing their tax returns. You don't claim deductions with your W-2 form.Form W-4 is Employee's Withholding Allowance. It's an IRS form that your employer has you fill out when you're hired. Your employer calculates withholdings from your earnings based upon the filing status and number of exemptions that you claim on Form W-4. The more exemptions you claim, the less will be withheld from your earnings.A single person can claim one personal exemption plus an additional exemption if only having one job. If you (or your spouse) have more than one job, then you might want to claim less exemptions to make sure that enough is withheld from your earnings. You can claim exemptions for dependents, if any.If you have a significant amount of unearned income (interest, dividends, capital gains, etc.) or self-employment income, claim fewer exemptions. If you're expecting certain credits (earned income, child and dependent care, etc.), claim more exemptions.Also included with Form W-4 is a Personal Allowances Worksheet plus Deductions and Adjustments Worksheet and Two-Earners/Multiple Jobs Worksheet. These Worksheets all help you determine the number of allowable exemptions for Form W-4.You can finetune your withholding with the IRS withholding calculator onlne at www.irs.gov. Select Too Much or Too Little Tax Withheld in the Special Interest Section in the middle column.For more information, go online to www.irs.gov/taxtopics. Select Topic 753 (Form W-4 Employee's Withholding Allowance Certificate).Also, for Publication 919 (How do I Adjust my Tax Withholding?), go to www.irs.gov/formspubs. Select Publication Number. Type 919 in the Find bar.
Should you choose 0 or 1 for exemptions on your income tax forms?
Form W-4 is Employee's Withholding Allowance Certificate. You enter the number of your exemptions on Form W-4. The Personal Allowances Worksheet guides you to take an accurate number of exemptions. If you (and/or your spouse) are working at more than one job, you might claim 0 allowances to make sure enough tax is withheld on your earnings. Also, if you have a large amount of nonwage income (interest, dividends, etc.), either claim 0 exemptions or arrange to make estimated tax payments using Form 1040-ES (Estimated Tax for Individuals). For more information, go online to print Publication 505 (Tax Withholding and Estimated Tax) at www.irs.gov.
W-4 form is used to calculate what?
Form W-4 is Employee's Withholding Allowance Certificate. You fill out the form for your employer. You check your filing status (Single, Married Filing Jointly). Also you total your allowances, which can be from 0 on up. Your allowances are based on your personal/dependent exemptions and other situations, such as more than one job, deductions/adjustments you're expecting to claim, etc. Your employer figures the amount of income tax to withhold based on your filing status and the number of allowances. For more information, go to www.irs.gov/taxtopics for Topic 753 (Form W-4 Employee's Withholding Allowance Certificate).
If your federal withholdings is 0 will fica stop also?
Not necessarily. FICA or Federal Insurance Contributions Act AKA Social Security and Medicare Taxes, are a very different type of tax than Personal Income Tax. Your Federal Withholding Taxes are the your personal income tax withheld and deposited with the Federal Reserve banks, for the Internal Revenue Service. FICA is flat rate, regressive tax (paid by the employee and employer, in matching portions.), which is assessed on the first dollar earned in wages at 6.2% (for SS tax), and 1.45% (for medicare), on the employee, and the same portion on the employer. The SS tax of 6.2% is assessed on earnings up to $106,800; earnings greater than this amount, are no longer taxed or withheld for SS tax, at 6.2%. For the medicare tax, which is also part of FICA, at a rate of 1.45%, there is not a limit in earnings, on which the tax is assessed. Your Personal Income tax withheld or paid in to the IRS, which are withheld from your wages, are based on a number of factors but in theory, the withholding or personal income tax is a progressive tax. Unlike the flat rate, regressive tax, progressive taxes are assessed at a percentage rate, which increases as the taxable base amount increases or, in the case of wages, and personal income taxes, as wage base increases. Personal withholding or income tax withheld from gross income, is also based on a number of factors, besides an increased percentage rate, as the wage based increases. One does not pay personal income tax on every dollar earned. There are personal exemptions, and allowances claimed by the wage earner, which are initially considered, when withholding personal income taxes from gross wages. FICA withholding is taxed on the first dollar earned, at 6.2% for SS tax, for a maximum of $106,800, and 1.45% for Medicare tax, with no wage maximum. Personal Withholding is based on the wage base amount, personal allowances and exemptions claimed, and if possible, credits claimed. Which means, you can earn several thousand dollars, and not have any personal income tax withheld, due to the number of personal allowances, exemptions and credits claimed, where as you will immediately be taxed for FICA.
The amount withheld for federal tax depends on the gross salary and the number of exemptions true or false?
False. The amount of income tax withheld depends on gross salary, filing status (single or married), and the number of withholding allowances claimed on Form W-4. Form W-4 is a form the employee fills out and gives to the employer. You claim withholding allowances on Form W-4, not exemptions. Many people mistakenly believe that you claim exemptions on Form W-4 which is why most people have far too much withheld. Exemptions are just one factor in determining how many withholding allowances you are allowed to claim. See the worksheet that is in the W-4 instructions or use the IRS calculator here: http://www.irs.gov/individuals/article/0,,id=96196,00.html The amount of Social Security and Medicare tax withheld depends only on gross salary. Also remember that the amount withheld is not the actual amount of tax you owe. The actual amount you owe is calculated when you fill out Form 1040 at the end of the year. When you file Form 1040, you get a refund if too much was withheld or you have to pay extra if not enough was withheld.
Why do you fill out a w-4?
Why: IRS tax forms are used by taxpayers and tax-exempt organizations to report financial information to the Internal Revenue Service (IRS) of the United States. They are used to report income and calculate taxes to be paid to the federal government of the United States.How: First, provide your name, address, and Social Security Number.Second, check the box for married or single, depending on your marital status.Third, calculate how many withholding allowances to claim. For most people, this is the same as the number of personal exemptions they claim on their tax return (see Line 6d on your 1040A or 1040).Fourth, if you have more than one job, if your spouse works, or if you itemize your deductions, use the worksheet on Form W-4 page 2. Use this worksheet to calculate the number of allowances to claim instead of relying on your personal exemptions.Fifth, you can also use the IRS Withholding Calculator to calculate your withholding allowances more exactly.Sixth, if you have more than one job, make sure you claim zero allowances at your second job. Claiming "exempt" is NOT the same as claiming zero. By claiming zero, the highest amount of tax will be withheld.Seventh, if you claim more than 9 allowances, your employer may be required to send your W-4 to the IRS for review. Don't be alarmed. People with incomes over $100,000 and with substantial itemized deductions may need to claim over nine allowances.Eigth, you are exempt from income tax withholding only if your income for the year will be less than $800. If you are exempt, skip lines 5 and 6, and write "EXEMPT" on line 7. Ninth, print, sign, and date the form.Finally, give the W-4 to your employer. They will fill out lines 8, 9, and 10.
What should you claim as deductions on your W 2 form?
Form W-2 is Wage and Tax Statement. It's an IRS form that employers are required to provide/send to their employees for the employees to use in filing their tax returns. You don't claim deductions with your W-2 form.Form W-4 is Employee's Withholding Allowance. It's an IRS form that your employer has you fill out when you're hired. Your employer calculates withholdings from your earnings based upon the filing status and number of exemptions that you claim on Form W-4. The more exemptions you claim, the less will be withheld from your earnings.A single person can claim one personal exemption plus an additional exemption if only having one job. If you (or your spouse) have more than one job, then you might want to claim less exemptions to make sure that enough is withheld from your earnings. You can claim exemptions for dependents, if any.If you have a significant amount of unearned income (interest, dividends, capital gains, etc.) or self-employment income, claim fewer exemptions. If you're expecting certain credits (earned income, child and dependent care, etc.), claim more exemptions.Also included with Form W-4 is a Personal Allowances Worksheet plus Deductions and Adjustments Worksheet and Two-Earners/Multiple Jobs Worksheet. These Worksheets all help you determine the number of allowable exemptions for Form W-4.You can finetune your withholding with the IRS withholding calculator onlne at www.irs.gov. Select Too Much or Too Little Tax Withheld in the Special Interest Section in the middle column.For more information, go online to www.irs.gov/taxtopics. Select Topic 753 (Form W-4 Employee's Withholding Allowance Certificate).Also, for Publication 919 (How do I Adjust my Tax Withholding?), go to www.irs.gov/formspubs. Select Publication Number. Type 919 in the Find bar.
What should you claim as deductions on your W-2 form?
Form W-2 is Wage and Tax Statement. It's an IRS form that employers are required to provide/send to their employees for the employees to use in filing their tax returns. You don't claim deductions with your W-2 form.Form W-4 is Employee's Withholding Allowance. It's an IRS form that your employer has you fill out when you're hired. Your employer calculates withholdings from your earnings based upon the filing status and number of exemptions that you claim on Form W-4. The more exemptions you claim, the less will be withheld from your earnings.A single person can claim one personal exemption plus an additional exemption if only having one job. If you (or your spouse) have more than one job, then you might want to claim less exemptions to make sure that enough is withheld from your earnings. You can claim exemptions for dependents, if any.If you have a significant amount of unearned income (interest, dividends, capital gains, etc.) or self-employment income, claim fewer exemptions. If you're expecting certain credits (earned income, child and dependent care, etc.), claim more exemptions.Also included with Form W-4 is a Personal Allowances Worksheet plus Deductions and Adjustments Worksheet and Two-Earners/Multiple Jobs Worksheet. These Worksheets all help you determine the number of allowable exemptions for Form W-4.You can finetune your withholding with the IRS withholding calculator onlne at www.irs.gov. Select Too Much or Too Little Tax Withheld in the Special Interest Section in the middle column.For more information, go online to www.irs.gov/taxtopics. Select Topic 753 (Form W-4 Employee's Withholding Allowance Certificate).Also, for Publication 919 (How do I Adjust my Tax Withholding?), go to www.irs.gov/formspubs. Select Publication Number. Type 919 in the Find bar.
What is the maximum number of allowances allowed on a W-4 without having to notify the IRS?
Form W-4 is Employee's Withholding Allowance Certificate. Employers formerly were required to submit to the IRS as W-4 forms claiming more than 10 allowances or complete exemption from withholding on weekly wages of at least $200. Employers now are required to submit W-4 forms only if the IRS specifically requests them.For more information, go to www.irs.gov/compliance/index.html for 'Withholding Compliance Questions & Answers'. Also, go to www.irs.gov/taxtopics for Topic 753 (Form W-4 Employee's Withholding Allowance Certificate).
Just married what is the best way to file if your husband owes child support in MD?
If by "just married" you mean you married in 2009, there is still time to avoid problems for 2009. The best way to make sure that your tax refund is not taken away from you is to make sure you don't get a tax refund. The reason people get tax refunds is because every week they have too much tax taken out of their paychecks. So you are essentially paying too much tax week after week. Then at the end of the year, you have to ask the government to repay all that money you overpaid. Get a new Form W-4 from your employer's payroll or HR department. Fill it out and claim MORE withholding allowances. Note that Form W-4 asks for withholding allowances, not for exemptions. The number of withholding allowances can be more than the number of exemptions you claim on your 1040 at the end of the year. Claim enough allowances so that you will not be receiving a refund at the end of the year. (Hint: You can owe up to $1000 in federal taxes at the end of the year without penalty.) You can use this calculator to play around with different numbers of allowances to see how much tax will be taken out of your pay at different levels: http://www.paycheckcity.com/NetPayCalc/netpaycalculator.asp If you are receiving the Earned Income Credit (EIC), ask your employer for a Form W-5. That will allow you to receive a bit of your EIC in each paycheck instead of waiting until the end of the year to receive it all in one big lump sum. Also ask for your state's equivalent of Form W-4 to adjust your state withholding. Adjust your withholding down to the point where you are getting a very small refund or will owe a little bit of money at the end of the year. (Be sure to save up some money if you will owe at the end of the year.) If you don't have a refund coming to you, no one can take it away from you and you save yourself all the hassle of filing innocent spouse forms and begging for your own money back. And you also get a bigger paycheck every week.
Can an employer change federal tax exemptions without permission?
Your employer is required to withhold payroll taxes based on the W-4 you fill out and sign indicating how many allowances you are claiming plus any additional dollar amount you want withheld or whether your are exempt from income tax withholding. You may complete a new W-4 any time your tax situation changes and you need to change your income tax withholdings. Once you submit the new W-4 to your employer, it should not take more than 1 payroll cycle for the employer to begin using the new allowances. You may also want to prepare a separate W-4-equivalent for your state if you are subject to state tax. For example, California's W-4-equivalent is Form DE 4. Your employer should not change your federal income tax withholding allowances without written notification from you (or the IRS, which is rare) to do so.
If someone is sued for a second time and they only have there exemptions from the last lawsuit do they have to give up those exemptions in order to pay the debt?
No, the exemptions allowed are not subject to forfeiture. When a person is sued numerous times the same exemptions will apply in each lawsuit judgment. It would be in the best interest of the debtor to review their exemption status to be certain they are protecting all personal and real property that is allowed according to their state laws. There are also federal non-bankruptcy exemptions that can be used by the debtor if they are applicable to the individual's situation.
What should you claim on W-4 to get your whole paycheck?
Do you mean to make sure that you do not have any federal tax taken out of your check at all? You either claim a large number of withholding allowance on line 5 or you write the word "exempt" on line 7. Remember that you can legally write the word exempt on line 7 only if you had absolutely no federal tax liability last year and expect to have none this year. But be warned, if you underpay your taxes by more than $1000 and don't meet one of several other exemptions (based on last year's taxes or 90% of this year's taxes), you will be charged an underpayment penalty. And there is also another penalty for claiming allowances or exemptions without a reasonable basis. If the IRS suspects that you did not have a reasonable basis for your claim, they will send you a letter asking to see the filled out worksheet from your Form W-4 or some other explanation. If you can't support your position, they will fine you $500 and order your employer to withhold at a rate they determine and to ignore any future W-4 forms you submit. Many people don't realize that this penalty exists in addition to the underpayment penalty listed above. So, if you have a reasonable basis to reduce your withholding, you should feel free to claim as many allowances as you need to. But if you are just thinking you'll eliminate all of your withholding and get rich by putting your withholding in the bank or the stock market until the end of the year, you will not win.
