W-4 Form

Taxation Print Email

W-4 form is a form that is filled by an employee for the purpose of indicating his/her tax related situation (status, exemptions, etc.) before the employer. The W-4 form informs the employer regarding the right tax amount that he/she needs to withhold form the paycheck of an employee.

However, the employee is at liberty to file a completely new W-4 form anytime there is a change in his conditions. The employee is required to fill W-4 form when he is hired by a company so that the employer is aware of the amount of tax that he/she needs to withhold. Employees must review their amounts that are being withheld by the employer regularly to make sure that correct tax amount is being withheld. Thus, if the employee completes the W-4 form accurately, then it will allow him/her to ensure that a huge amount is not due at the time of taxation. In addition to this, it also ensures that an employee is not overpaying his/her taxes.

Claiming allowances

The W-4 form is very much based on the concept of allowances. If an employee claims more allowance, then his/her employer will withhold less amount of money for paying taxes. Thus, the employee gets one particular allowance for himself, another for his spouse and yet another for the dependents reported by him/her on his/her return. The employee can also claim extra allowances in few cases, like planning for itemizing the deductions at the time of preparing his/her tax return, when the status of his/her tax filing is ‘head of household’ or in case he/she is eligible for claiming a tax credit as part of expenses incurred for taking care of a child.

Filling W-4 form

The W-4 form also called the ‘Employee's Withholding Allowance Certificate’ consists of a number of worksheets that the employee can utilize for the purpose of calculating the correct number of allowances, which can be claimed. Thus, it also comes with a separate worksheet, which is meant for the taxpayers whose spouse is working or has any other type of income. Once the allowances have been calculated, the employee must also provide certain personal data and information as well as report his/her total number of allowances on the form. 

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