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W-4 Tax form

The W-4 tax form is used by your employer so that the correct amount of federal income tax can be withheld from each of your paychecks. This form is one of the most incorrectly filed out forms. In filing incorrectly, you will either have too much money taken out of each check, causing a large refund to be issued at tax time or too little to be withheld, causing money to be owed at tax time. Learning how this form affects you can save you stress and provide better financial planning.

The aspects that affect the number of exemptions you can claim are: your dependents and/or children, your number of jobs, the number of income earners in the household, your filing status, and if you itemize your deductions on your tax return. In order to help determine the number of exemptions you can claim, you will need to use the three worksheet found on this form: the Personal Allowance Worksheet, Deduction and Adjustment Worksheet, and the Two-Earner/Multiple Jobs Worksheet.

With this form, as long as you are not under the age of eighteen (or twenty-three and attending college), you should always claim an exemption for yourself. This is going to be the first line of the Personal Allowance Worksheet. The next line concerns your marital status and if there is only one main income for the entire household. You can claim an exemption on line C for your spouse. If your spouse works (one or multiple jobs) or you have multiple jobs, it may be better for you not to claim an exemption on this line to prevent too little tax from being withheld. Lines D, F, and E, all concern your dependents and childcare expenses. You will total up these allowances on line H, but keep in mind that this number may not be the same as the exemptions you are able to claim on your tax return.

The 2nd page of the W-4 tax form has the Deduction and Adjustment Worksheet and the Two-Earner/Multiple Jobs Worksheet. You would only use the Deductions Worksheet if you estimate qualifying deductions such as medical expenses, state and local taxes, mortgage interest, and charitable contributions will be more than ten percent of your income. You should use the other worksheet if it applies to you or your spouse.

Filling out this form correctly, will have an effect on each of your paychecks and also on your tax return. You should consider updating this form yearly or as changes occur, such as marriage, childbirth, divorce. But keep in mind, the less exemptions you take, the more federal tax will be withheld from your paycheck.

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IRS Form W-9

by Kylee Sanders

The IRS is a government organization in the US that is responsible for collecting revenues, employment and income tax and implementation of new laws on tax.

The IRS is a government organization in the US that is responsible for collecting revenues, employment and income tax and implementation of new laws on tax.

Form W-9 is the most common (and most popular) type of a form, filled by almost every employee. Form W-9 is filled up by individuals who have been requested for their identification number and certification from the companies that will pay them their income. The company or individuals (in other words the employer) that collect this form do not send it to the IRS. Rather, they use it and keep it with themselves in order to create their pay checks. For business owners, their clients can also ask them to provide a W-9 form in order to keep a track of the payments they make to them.

Completing Form W-9

On the form you will be asked to fill in your name as mentioned in your federal income tax return. The next thing will be to write down the company name or business you own, if any. The third part will be to classify your tax from the provided options by choosing the most appropriate one.

Taxpayer identification number

In the next section you will need to jot down your address and write down either your Social Security Number or (if you are a non-resident) the TIN, Taxpayer Identification Number.

Business owner or employers will have to fill in the next blank with their respective identification number of the employer. Date can be filled at the bottom and then signed.

Backup withholding

Backup Withholding is when the IRS requests the individual or company that has asked for you W-9 form to keep a certain amount to withhold from your payment in order to pay for your federal income taxes. The IRS always notifies if your account has been considered subject to Backup Withholding. You will be required to inform the individual or company to withhold a part of your income as a part of federal income taxes.

Submitting Form W-9

The W-9 form needs to be submitted to one’s company. You may hand it over to the supervisor or the person looking after the HR department. The fully-filled forms are kept with your employer, stored in your personal file and referred during pay.

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Requesting a W-9

by Ryan Kendall

A W-9 is one of the commonly used forms used by the Internal Revenue Service. It is basically asked by people who pay you money for your services. Requesting a W-9 is extremely important if you are taking the services of a freelancer or an independent contractor. In this form, the person whose W-9 has been requested will give his Taxpayer Identification Number (TIN), which is basically the Social Security Number, to the entity, which has to make the payments against the work done by the worker.

Requesting a W-9 is extremely important if you are taking the services of a freelancer or an independent contractor.

The employer uses this form to make the employee pay checks for the year and also for filling out the W-2 form at the end of the year. It helps the employer to keep a track of the payments he has made in your name. As such, this form is not submitted to the IRS, but only kept as a record in the file of the employee. Now, if you have requested for a W-9, then at some point in the future you will have to give out the 1099 tax form to the employer, where the gross payments you make, will be shown. This is important for the employer. The employer will need this 1099 form, to fill the tax returns at the end of the year. A 1099 will only be needed if the employer is being paid more than $600 in a year, otherwise it is not needed. But if you do obtain it as an employee, you need to send this to the IRS.

How to fill up the W-9

As an employee, you must give out the correctly and carefully filled W-9. When the employer is requesting a W-9 from you, that means he will keep a proper record of you r payments and this is also very important to you. Fill your full name, the one which is on the first line of the federal income tax returns. If you running a business by some other name, then write that name on the second line. Then, select whether you are working in sole proprietorship, partnerships, or any corporation. After completing the mailing address section you will have to give your Taxpayer Identification Number (TIN), which generally is the Social Security Number. A non-resident individual will only give their TIN as they do not have a Social Security Number. Then sign the form with the date.

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