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Why must a W-4 form be completed?

Updated: 9/17/2023
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Form W-4 is Employee's Withholding Allowance Certificate. The purpose of the form is to guide your employer in accurately withholding taxes (income, social security, Medicare) from your earnings. The amount that's withheld is determined by the number of exemptions that you're claiming.

Also, if you're completely exempt from federal income tax withholding, you need to fill out Form W-4 for your employer. To have complete exemption, you must meet two conditions. One, the previous year all federal income tax withheld from your earnings was completely refunded to you because you had no tax liability. Two, you're expecting this year to be the same situation: any federal income tax that would be withheld would be completely refunded to you.

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