Warning: "continue" targeting switch is equivalent to "break". Did you mean to use "continue 2"? in /home/momrevie/bankclip.com/wp-content/themes/mts_wordx/options/php-po/php-po.php on line 185
4 Steps To Easily Fill Out a W-4 - Bank Clip

4 Steps To Easily Fill Out a W-4

There are several reasons why you might find yourself needing to complete a W-4 form. You might be starting a new job, or you may have recently gotten married or divorced. Each of these life events often means that you will be filling out a w4. The form itself might seem rather confusing on the surface, but there are four easy steps that you can follow to accomplish this feat easily and effectively.

Complete the Worksheet To Determine Personal Allowances

The personal allowance worksheet is designed to help you figure out how many exemptions you can claim on your taxes. This impacts your end of the year tax bill, which is why it is so helpful to figure out now. The worksheet is only for you. Go through the questions and answer them. Add up the numbers that you get and then fill that in on your W-4 form. You are not required to give the worksheet to your employer. Just be as accurate as possible and then enter the number of exemptions where requested.

Determine If You Need To Make Any Adjustments

If you anticipate only claiming the standard allowed deduction on your end of the year tax return, then you can skip this step. However, you will want to complete this worksheet if you think that you will have any deductions or adjustments that will need to be made. Again, this will impact how much tax is withheld from each of your paychecks throughout the year. There is also a place on the worksheet to allow for any tax credit that you might be able to claim. Remember to be accurate in this section and then fill in the value on the W-4. That is all your employer needs to see.

Look for the Two-Earners and Multiple Jobs Worksheet

This is yet another worksheet that can be helpful if you are working more than one job at the same time. In addition, you can also use this worksheet if you are married and your spouse is working. The reason this is important is that you pay tax on your combined salary from all sources. If you are working multiple jobs, you may need to have tax withheld at a higher rate in order to make up the difference. Failing to do this may result in a tax liability at the end of the year that could bring about a fine.

Fill in the Certificate for Employee’s Withholding Allowance

Now it is time to fill in the withholding allowance. This is the top section of the W-4, and it is really the only part of the form that your employer cares about. Make sure to fill in your personal information accurately. Now that you have completed each of the worksheets, you simply fill in the values where requested. Don’t forget to sign and date the form before handing it in.

If you will follow these four steps, you will find that you can accurately complete your W-4. This form is important because it will enable your employer to withhold the proper amount of taxes from each paycheck. You do not want to pay too much, but paying too little can trigger financial penalties down the road that you certainly do not want.