|
What are withholdings?
What is Form W-4?
How can I check my witholding?
What if not enough tax is being withheld?
What if too much tax is being withheld?
Is it possible for me to claim exemption from withholding?
How do I claim exemption from withholding?
Can I write my employer a check to cover my withholdings?
What are witholdings?
If you are an employee, your employer probably withholds income tax from your pay as the result of you filing out Form W-4 (the form necessary to declare witholdings). In addition, tax may be withheld from certain other income, including pensions, bonuses, commissions, and gambling winnings. In each case, the amount withheld is paid to the Internal Revenue Service (IRS) in your name.
What is Form W-4?
Form W-4 is completed by employees so that employers can withhold the correct federal income tax from a paycheck.
How can I check my witholding?
After your Form W-4 takes effect, use IRS Publication 919 to see how the amount you are having withheld compares to your projected total tax for 2009. The IRS advises you to view Publication 919, especially if your earnings exceed $130,000 (Single) or $180,000 (Married).
What if not enough tax is being withheld?
If not enough tax will be withheld, you should give your employer a new Form W-4 showing either a reduced number of withholding allowances or an additional amount to be withheld from your pay.
What if too much tax is being withheld?
If too much tax is withheld, you may receive a large refund when you file your return. If you would prefer to receive the money during the year, you should see if you qualify to have
less tax withheld. If so, give your employer a new Form W-4 showing more withholding allowances.
Is it possible for me to claim exemption from withholding?
You can only claim exemption from withholding for 2009 if BOTH of the following situations apply:
- For 2008 you had a right to a refund of all federal income tax withheld because you had no tax liability.
- For 2009 you expect a refund of all federal income tax withheld because you expect to have no tax liability.
How do I claim exemption from withholding?
If you want to claim exemption from withholding, you have to give your employer a Form W-4. Do not complete lines 5 and 6. Be sure to enter "Exempt" on line 7.
Can I write my employer a check to cover my withholdings?
No. You cannot give your employer a payment to cover federal income tax withholding on salaries and wages for past pay periods or a payment for estimated tax.
|
|
