Most of the time, when you make any money, the IRS expects to tax some of it. What is a W-4? It documents withholding to make taxes easier. Knowing how to complete W-4 paperwork is crucial.
What Is a W-4 Tax Form?
What is a W4 tax form? It's formally known as an employee’s withholding certificate by title. In practical effect, it determines how much money is held out of an employee's paycheck for taxes to the federal government. Filling it out properly can mean not having to pay many or any taxes when they're due.
How to File a W-4 Form
A W-4 form is, fortunately, one of the more basic forms the IRS provides. Still, there are a few steps involved in filling it out before you file it.
Enter Your Personal Information
This will start with your name, your address, your Social Security number, and your tax filing status. You'll also have to choose from options such as married filing separately, single, married filing jointly, head of household, and others.
Account for All Jobs You and Your Spouse Have
Self-employment income has to be included now, unlike older W-4 forms. You have to combine all your expected income into one number so you know how much should properly be withheld from your paychecks.
Claim Your Children and Other Dependents
If you are a sole parent, you have to claim these as your own. If you're married, only one of you has to claim them. It's generally best to put them on the highest-earning income tax return to maximize the potential tax deductions and benefits involved with claiming kids and dependents.
Make Other Adjustments
Other adjustments can include both deductions or more withholdings that you would like taken out of your paychecks. If you are married and plan on claiming other income or deductions, it's best to put it on only one person's W4 and not both.
Sign and Date Your Form
Once you have your form filled out or it's verified by your trusted tax professional, sign your name to it, put today's date, and then turn it into your employer so they can process it.
When to Fill Out a New W-4
Knowing how to fill out a W4 is crucial when the time comes to fill out a new one. Major life events are when to do it, such as a marriage, baby, divorce, or child coming of age into adulthood and no longer being dependent on you for finances.
Do You Claim 0 or 1 on Your W-4 Form?
Part of knowing how to complete W-4 paperwork is knowing when to claim 0 or 1. Putting a 0 withholds more taxes, but 1 lets you keep more of your paycheck.
How to Fill Out Your W-4 to Get More Money
What is a W4? Believe it or not, it might be a chance to get more money. The first thing you have to decide is whether you want more money on your paychecks or your annual tax refund. Adding amounts to Step 4c can boost your paycheck. You can boost your tax refund by lowering the amounts for 4a or 4c or by increasing your deductions on Step 4b.
Get Help with Filling Out Your W-4 Form
If you need help filling out your W-4 form 2022 paperwork, then consider turning to the professionals at Lewis CPA. They can help you avoid withholding too little or overpaying too much. You can always provide employers with updated W-4 forms.