What is a W-4 Form?
A W-4 Form is an IRS tax form used in the United States that employees fill out to announce their federal income tax withholding inclination. When you start working at a new company, your employer will provide you with a W-4 form to complete before you get your first paycheck.
A W-4 form includes information such as your filing status, dependents and any other additional income or deductions which may affect your tax liability. Based on the provided information, your employer will use the IRS withholding table to determine the applicable amount of federal income tax to withhold from your paycheck.
How to Fill out a W-4 Form?
Filing out a W-4 form can be challenging initially, but it is straightforward. Your employer will provide the form when you start a new job, and you’ll need to fill it out precisely to ensure the perfect federal income tax withholding from your paycheck.
Below are steps on how you can fill out a W-4 form:
Step 1: Submit your personal information
Step 2: List out all of the occupations you acquire and your companion have
Step 3: Pinpoint your dependents, including your children
Step 4: Add further alterations
Step 5: Fill the date and sign the form.
What is the Purpose of the W-4 Form?
The sole purpose of a W-4 form is to provide information to your employer about your filing of the federal income tax withholding preferences. It is an important document that helps your employer decide how much federal income tax to subtract from your salary for each pay period.
Below mentioned are the primary purpose of a W-4 form:
- Determine Tax Withholding
- Resonate your personal and financial information
- Avoid under-withholding, and its penalties
- Progress your tax refund
- Flexibility and Updates