Tuesday, March 18, 2008

Withholdings Allowances

Did you know that the more allowances you claim on Form W-4, the less income tax your employer will withhold? You will have the most tax withheld if you claim "O" allowances. The number of allowances you can claim depends on the following factors:

*How many exemptions you can take on your tax returns
*Whether you have income from more than one job
*What deductions, adjustments to income ,and credits you expect to have for the year
*Whether you will file a Head Of Household.

If you have income from more than one job at a time,complete only one set of W-4 worksheets,then split your allowances between he W-4 form for each job. The taxpayer cannot have the same allowances with more than one employer at the same time.

Married Individuals-
If both you and your spouse are employed and expect to file a joint return, figure your withholding allowances using your combined income, adjustments,deductions, exemptions and credits.Use only one set of worksheets. You can divide your total allowances using separate worksheets based on your own individual income, adjustments, deductions, exemptions, and credits.

No comments: