If no one is claiming you as a dependent, you can enter a “1” in the blank provided for line A on the form.
If your total income will be between $179,051 and $200,000 ($345,851 to $400,000 if married filing jointly), enter “1” for each eligible child. If your total income will be higher than $200,000 ($400,000 if married filing jointly), enter “0”.
If your total income will be between $71,201 and $179,050 ($103,351 to $345,850 if married filing jointly), enter “1” for every 2 dependents (for example, enter “0” for 1 dependent, “1” if you have 2-3 dependents, and “2” if you have 4 dependents). If your total income will be higher than $179,050 ($345,850 if married filing jointly), enter “0”.
For example, if you are married with 2 children who qualify for the tax credit, your spouse does not work, and your income is $100,000 you would claim a total of 11 allowances: 1 on Lines A, B, and C and 8 on LIne E.
If neither of those descriptions applies to you, you can enter the amount from line H directly into line 5 on your withholding allowance certificate. [6] X Trustworthy Source Internal Revenue Service U. S. government agency in charge of managing the Federal Tax Code Go to source
You are considered single if you are unmarried, divorced, or legally separated according to state law. You also are considered single if you are married but your spouse is a nonresident of the United States. You are considered married if you are married according to state law. If your relationship status on the last day of the year is “married,” then for the purposes of federal taxes you are married for the entire year. [9] X Trustworthy Source Internal Revenue Service U. S. government agency in charge of managing the Federal Tax Code Go to source You can choose to withhold taxes at a single rate, which is higher, if you are married but would prefer to have more money kept from your paycheck. [10] X Trustworthy Source Internal Revenue Service U. S. government agency in charge of managing the Federal Tax Code Go to source
When you’ve completed and signed your form, return it to your employer. Check your pay stubs to ensure the proper amount of money is being withheld each pay period.
If any event happens that changes your withholding status, such as a birth or a divorce, you must file a new W-4 with your employer within 10 days of the event’s occurrence. [16] X Trustworthy Source Internal Revenue Service U. S. government agency in charge of managing the Federal Tax Code Go to source
This worksheet also takes into account other non-wage income you might have, such as dividends and interest.
For example, suppose you are single when you file your taxes in 2019. Your standard deduction would be $12,200. When you add up your itemized deductions, the total is $5,000. In that situation, you probably would choose to take the standard deduction. [19] X Trustworthy Source Internal Revenue Service U. S. government agency in charge of managing the Federal Tax Code Go to source Enter the dollar amount of your estimated itemized deductions in the blank on line 1. [20] X Trustworthy Source Internal Revenue Service U. S. government agency in charge of managing the Federal Tax Code Go to source
To continue the example, suppose you paid $2,000 in student loan interest that you planned to claim on your taxes. You would enter $2,000 on line 4.
The total in the example for line 5 would be $2,000.
If you received $500 in interest income, for example, you’d enter $500 on line 6.
You should only use this worksheet if the instructions under line H on your Personal Allowance Worksheet directed you to do so. [29] X Trustworthy Source Internal Revenue Service U. S. government agency in charge of managing the Federal Tax Code Go to source
If the number on line 1 is less than the number on line 2, enter “0” on line 5 of your Withholding Allowance Certificate. You should then complete the rest of the worksheet to figure out what additional amount to have withheld from your paycheck. This will help you avoid having to pay the IRS when you file your taxes. [31] X Trustworthy Source Internal Revenue Service U. S. government agency in charge of managing the Federal Tax Code Go to source
Line 4 instructs you to enter the number from line 2 of the same worksheet. This was the number that corresponded to the lowest paying job. Assume, for example, that number was “3. " On line 5 you’ll need to enter the number from line 1 on the same worksheet, which was the final number you arrived at on line 10 of your Deductions and Adjustments Worksheet. To continue the example, assume that number was “1. " Now subtract line 5 from line 4 and enter the result in line 6. In the example, the result would be “2. " Using table 2 provided on the worksheet, find the amount that corresponds to the highest paying job. Assume you are married filing jointly, and your highest paying job pays $50,000 a year. According to the table, you should enter $500 on line 7. Now multiply line 7 by line 6 and enter the result on line 8. This is the total amount of additional withholding needed. In the example, that number would be $1,000. All you need to do now is divide that number by the number of pay periods remaining in the year. This depends on how often you’re paid and what time of year you start. If you started the job for which you’re filling out a W-4 in February and will be paid monthly, you would divide $1,000 by 10 because there are 10 pay periods left in the year. The result of that calculation, $100, is the additional amount of money that needs to be withheld from your paychecks. This is the amount you’d enter on your Withholding Allowance Certificate. [33] X Trustworthy Source Internal Revenue Service U. S. government agency in charge of managing the Federal Tax Code Go to source
