Step-By-Step: Completing A Tax Withholding Form

Filling out a Federal tax withholding form can seem a little intimidating. Many people become uneasy when presented with any document involving federal income taxes. However, filling out a federal tax withholding form, or W-4 as it is commonly referred to, is not difficult. In fact, here is a guide that will show you exactly what to do:

Things That You Will Need

•A blank W-4 form
•A writing pen

Step One - The Personal Allowances Worksheet

On your W-4 form, there will be a section titled Personal Allowances Worksheet (keep for your records.). This is where you'll need to start:

•Line A - Enter the number 1 in the blank space next to the letter A;

•Line B - If you meet any of the requirements listed for line B, then enter the number 1 in the blank space next to the letter B. (Note - most people meet at least one of these requirements.);

•Line C- If you're married and your spouse does not work, you may choose to enter 1 in the blank space next to the letter C; however, entering 0 may potentially help you from having too little tax withheld and having to pay when you file your income tax return;

•Line D - Other than yourself, or your spouse, enter the number of dependents that you'll be claiming on your income tax return. Typical of dependents include children and others in your household that do not work and depend upon you for support. Enter this number in the blank space next to the letter D;

•Line E - If you're not married yet you pay more than 50% of the living expenses of another(other) individual(s) in your household, then you can enter a 1 in the blank space next to the letter E;

•Line F - If you have childcare expenses, or expenses related to the care of a dependent, which amount to at least $1800, then enter the number that corresponds with the number of children or dependents for which you pay at least $1800 in care expenses in the blank space next to the letter F;

•Line G - If you have children, and earn less than $61,000 as an individual ($90,000 if married) then enter two for each of your children. If you have three or more children enter 2 for each child and then subtract 1 from the number that you enter into the blank space next to the letter G. If your total in common is between $61,000 and $84,000 ($90,000 and $119,000 if married) enter 1 for each child plus 1 additional if you have six or more children in the blank space next to the letter G;

•Line 8 - Add the total for the numbers entered in blanks A through G, and enter that number on the blank space next to the letter H.

Step Two - Completing the Form

Next, in the area of the W-4 form that reads Employee Withholding Allowance Certificate:

•Line 1 - Write your first name and middle initial. In the space to the immediate right of line 1, write your last name. You also need to enter your full address, city, state and zip code in the space directly beneath line 1;

•Line 2 - Write your Social Security number;

•Line 3 - Check the appropriate box to indicate if you're single, married or if you wish to file as married but have a higher single rate withheld from your paycheck;

•Line 4 - If your last name is different from that shown on your Social Security Card, then check the box;

•Line 5 - Enter the number that you entered on in the blank space next to the letter H on the Personal Allowances Worksheet section of the form;

•Line 6 - If you wish an additional amount to be withheld from your paycheck then enter the amount here;

•Line 7 - If you meet the qualifications to be considered exempt from withholding then write the word “EXEMPT” in the space provided for box number seven.

Once you have completed filling in all blanks on the form, then sign the form and date it. Then, return the form to your employer. You have now finished filling out your W-4 form.