Abbe, age 56, started a new job in 2020. At Abbes previous employer she had filed a
Question:
Abbe, age 56, started a new job in 2020. At Abbe’s previous employer she had filed a Form W-4 with 5 allowances. Abbe’s new employer will:
a. Use a copy of Abbe’s previous Form W-4 to calculate income tax withholding.
b. Permit Abbe to file a new W-4 using either the old allowances method or the new method.
c. Require Abbe to complete a new 2020 version of Form W-4.
d. Require Abbe to withhold as a single taxpayers with no dependents.
e. Require Abbe to use the IRS on-line withholding estimator.
Transcribed Image Text:
Form W-4 Department of the Treasury Internal Revenue Service Step 1: Enter Personal Information Step 2: Multiple Jobs or Spouse Works Step 2: Multiple Jobs or Spouse Works Employee's Withholding Certificate Complete Form W-4 so that your employer can withhold the correct federal income tax from your pay. Give Form W-4 to your employer. Your withholding is subject to review by the IRS. Last name (a) First name and middle initial Step 3: Claim Dependents Address Step 4 (optional): Other Adjustments City or town, state, and ZIP code Step 5: Sign Here (c) Single or Married filing separately Complete Steps 2-4 ONLY if they apply to you; otherwise, skip to Step 5. See page 2 for more information on each step, who can claim exemption from withholding, when to use the online estimator, and privacy. Married filling jointly (or Qualifying widow(er)) Head of household (Check only if you're unmarried and pay more than half the costs of keeping up a home for yourself and a qualifying individual.) Complete Steps 3-4(b) on Form W-4 for only ONE of these jobs. Leave those steps blank for the other jobs. (Your withholding will be most accurate if you complete Steps 3-4(b) on the Form W-4 for the highest paying job.) Complete this step if you (1) hold more than one job at a time, or (2) are married filing jointly and your spouse also works. The correct amount of withholding depends on income earned from all of these jobs. Do only one of the following. Complete Steps 2-4 ONLY if they apply to you; otherwise, skip to Step 5. See page 2 for more information on each step, who can claim exemption from withholding, when to use the online estimator, and privacy. OMB No. 1545-0074 2020 (b) Social security number (a) Use the estimator at www.irs.gov/W4App for most accurate withholding for this step (and Steps 3-4); or (b) Use the Multiple Jobs Worksheet on page 3 and enter the result in Step 4(c) below for roughly accurate withholding; or (c) If there are only two jobs total, you may check this box. Do the same on Form W-4 for the other job. This option is accurate for jobs with similar pay; otherwise, more tax than necessary may be withheld... 0 Does your name match the name on your social security card? If not, to ensure you get credit for your earnings, contact SSA at 800-772-1213 or go to www.ssa.gov. TIP: To be accurate, submit a 2020 Form W-4 for all other jobs. If you (or your spouse) have self-employment income, including as an independent contractor, use the estimator. Complete this step if you (1) hold more than one job at a time, or (2) are married filing jointly and your spouse also works. The correct amount of withholding depends on income earned from all of these jobs. Complete Steps 3-4(b) on Form W-4 for only ONE of these jobs. Leave those steps blank for the other jobs. (Your withholding will be most accurate if you complete Steps 3-4(b) on the Form W-4 for the highest paying job.) If your income will be $200,000 or less ($400,000 or less if married filing jointly): Multiply the number of qualifying children under age 17 by $2,000 $ $ Do only one of the following. (a) Use the estimator at www.irs.gov/W4App for most accurate withholding for this step (and Steps 3-4); or (b) Use the Multiple Jobs Worksheet on page 3 and enter the result in Step 4(c) below for roughly accurate withholding; or (c) If there are only two jobs total, you may check this box. Do the same on Form W-4 for the other job. This option is accurate for jobs with similar pay; otherwise, more tax than necessary may be withheld.... 0 TIP: To be accurate, submit a 2020 Form W-4 for all other jobs. If you (or your spouse) have self-employment income, including as an independent contractor, use the estimator. (b) Deductions. If you expect to claim deductions other than the standard deduction and want to reduce your withholding, use the Deductions Worksheet on page 3 and enter the result here (c) Extra withholding. Enter any additional tax you want withheld each pay period Multiply the number of other dependents by $500 Add the amounts above and enter the total here (a) Other income (not from jobs). If you want tax withheld for other income you expect this year that won't have withholding, enter the amount of other income here. This may include interest, dividends, and retirement income.. 4(a) $ Employee's signature (This form is not valid unless you sign it.) Employers Employer's name and address Only For Privacy Act and Paperwork Reduction Act Notice, see page 3. First date of employment Cat. No. 10220Q Under penalties of perjury, I declare that this certificate, to the best of my knowledge and belief, is true, correct, and complete. 3 $ 4(b) $ 4(c) $ Date Employer identification number (EIN) Form W-4 (2020)
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Related Book For
Income Tax Fundamentals 2021
ISBN: 9780357141366
39th Edition
Authors: Gerald E. Whittenburg, Martha Altus-Buller, Steven Gill
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