Tag: multiple jobs worksheet

Posts Tagged ‘multiple jobs worksheet’

What Are Allowances on a W-4?

Posted by admin on October 18, 2016
Last modified: November 2, 2016

You must pay tax to the IRS but your W-4 form lets you decide when to pay it.

When beginning a new job, you may remember your employer handing over a W-4 form (along with the pile of other paperwork) to fill out. Your W-4 form determines how much tax is withheld from your income based on how many allowances you claim.
You can claim a certain number of allowances depending on your life situation. Allowances conclude how little or how much your employer will withhold from your paychecks throughout the year for taxes. In other words, the size of your tax refund or tax due to the IRS after filing your taxesYou can claim as little as zero allowances or as many as apply to you and your tax situation. The ideal situation is to break even; no tax owed and no tax refund.

How many allowances should you claim?

The details to your specific situation (such as your filing status, number of children, etc.) will determine how you complete your W-4.

If your parents claim you: 

If you’re being claimed as a dependent on someone else’s tax return, you’ll most likely want to claim zero allowances. This is because your parents are claiming you as an exemption, rather than you claiming yourself.

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