Completing IRS Form W-4 and Worksheets & Georgia Form W-4
Duluth, Norcross, Alpharetta CPA: Completing IRS Form W-4 and Worksheets & Georgia Form W-4
Determining Your Federal & State Withholding
Marital Status
People who qualify under the claim of married generally have a lower withholding rate. If you are not married then you must take your withholding at the increased single rate, head of household or the highest tax bracket, married filing jointly.
You should mark single in the box if any of the following apply to you:
• If you are single, divorced, or separated from your partner by order of court and law
• If you are married but your spouse is not an American citizen
You should mark married in the W-4 if any of the following apply to you:
• If you and your spouse are both legal U.S. Citizens. If your spouse dies during the current tax year you are still considered married for that tax year.
• Either you or your spouse is considered a resident alien. You can find the details on resident aliens on IRS Publication 519.
If you are married but still withholding at a single rate. If you and your spouse, both working, cannot meet the requirements of a married withholding tax then you can file a “married, but withhold at a single rate” to fulfill the necessary payments for married withholding.
Determining Withholding Allowances
Allowances run in relation to your amount withholding. The more allowances you claim the less income tax you have to withhold, or your employer has to withhold. Your allowances depend on these following things:
• How many exemptions you can take on your tax return
• Whether you have income from more than one job
• What deductions, adjustments to income, and credits you have exacted for the year
• Whether you will file as head of the household
Great care should be taken that you do not under withhold as both the IRS and Georgia will add penalties and interest for any late payment of taxes when you settle up and actually file your IRS Form 1040/personal income tax return.
If you are married, it depends on whether your spouse is going to work or claim allowances on their own Form W-4 to the IRS and the G-4 to the State of Georgia. As a Duluth CPA I have learned over the years that understanding your filing status is confusing, as is tax law, for many taxpayers, to read more on this visit http://www.hiscpa.com/personal-returns.html