1. Filling Out A W-4 Form

2. W-4 Form Gives info to employer so they can calculate how much income tax to withhold Gives info to employer so they can calculate how much income tax to withhold You are responsible for the accuracy of this document and can be fined You are responsible for the accuracy of this document and can be fined You pay little by little and don’t owe one lump sum in April You pay little by little and don’t owe one lump sum in April The govt. receives a steady cash flow The govt. receives a steady cash flow Sample W-4 Form and Worksheet Sample W-4 Form and Worksheet Sample W-4 Form and Worksheet Sample W-4 Form and Worksheet

3. Allowances Allowances – a number recorded on the W-4 that reduces the amount withheld from your pay Allowances – a number recorded on the W-4 that reduces the amount withheld from your pay The more allowances, the less withheld The more allowances, the less withheld The number of allowances will not change what you owe The number of allowances will not change what you owe

4. Ex. Ex. $700 is withheld throughout year $700 is withheld throughout year In April it is determined you owe $8,000 In April it is determined you owe $8,000 You will pay difference (plus fine) You will pay difference (plus fine)

5. Dependents Dependents can be taken as allowances Dependents can be taken as allowances Under 19 Under 19 Full-time student under age 24 Full-time student under age 24 Elderly relatives living in your household with very limited income Elderly relatives living in your household with very limited income