LO.5 In each of the following independent situations, determine the maximum withholding allowances permitted Eli (an employee) on Form W–4.

a. Eli is single with no dependents.

b. Eli is married to a nonemployed spouse, and they have no dependents.

c. Eli is married to Vera, an employed spouse who earns $25,000, and they have three dependent children. Eli and Vera do not qualify for the child tax credit. On the Form W–4 that she filed with the employer, Vera claimed zero allowances.

d. Assume the same facts as in (c), except that Eli and Vera fully support Eli’s mother, who lives with them. The mother (age 70 and blind) qualifies as their dependent.

(Refer to Chapter 3.)

e. Eli is single with no dependents but works for two employers, one on a full-time basis and the other on a part-time basis. The Form W–4 filed with the first employer (the full-time job) reflects two withholding exemptions. The wages from each job exceed

$1,000.

f. Assume the same facts as in (e), except that Eli is married to a nonemployed spouse.