THE STEPS TO COMPLETING

A FORM W-4

Mr. Stasa W-E City Schools ©

W-4 FORM

WHAT’S A W-4 FORM? Employers must withhold (deduct) federal,

local, and state taxes from each employee’s paycheck

When hired for a job or when your financial situation changes, you must complete a W-4.

A W-4 form notifies your employer of how much federal tax to withhold from your paycheck

The amount of federal tax to be withheld from your paycheck depends on how many allowances you claim on your W-4.

An allowance adjusts the amount of federal tax withheld from your paycheck

The more

allowanc

es the

less tax

withheld

WHAT IF I DON’T FILL OUT A W-4?

Your employer must withhold the highest amount of federal tax from each paycheck if no W-4 is provided

If false information was intentionally provided, you could face fines up to $1,000, or 1 year in prison

If false information was provided by mistake, no penalties will be imposed

CLAIMING ALLOWANCES

The number of allowances you can claim depends on: Your marital status Dependents (usually children) you are

claiming A dependent is someone who receives more

than 50% of their financial support from a taxpayer who is claiming them

A dependent can be claimed by another tax payer: If they’re under the age of 19 Or if they’re a full-time student under the

age of 24.

GETTING STARTED Determine if you are exempt from having

federal taxes withheld from your paycheck.

CLAIMING EXEMPTION

Claiming exemption means that your employer will not withhold any federal tax from your paycheck You must meet certain criteria to be exempt

You cannot be exempt from state tax, Social Security, or Medicare deductions

If you are a student, you are not automatically exempt.

If you work only part-time or during the summer, you may qualify for exemption from withholding.

$6,200

SCENARIO #1 Determine if you are exempt from having federal

taxes withheld from your paycheck. You plan to make $3,500 this summer before your junior year.

John M. Doe 222-33-4444 5674 Vine St. X

Eastlake, OH 44095

Exempt

John M. Doe 3/10/14

SCENARIO #2 Let’s suppose you’re going to work part-time

this summer and this fall after school a few hours per day. You expect to make about $7,500 for the year. You’re going to be a senior next year.

1. Check to see if you’re exempt.

$6,200

COMPLETING THE W-4 You must complete the Personal Allowances Worksheet

prior to competing the W-4 form. Complete the following if you cannot claim exemption. Let’s assume we’re going to make $7,500 this year.

1

1

W-4 FORM

John M. Doe 222-33-4444

5674 Vine St. X

Eastlake, OH 44095

1

John M. Doe 3/10/14