Tax Instructions And Worksheets Template - 2016 (Page 2 of 4) in pdf

Instructions - Page 1

Employee’s Federal Withholding Allowance

filing status on your tax return only if you are unmarried and pay

Form W-4 (2016)

more than 50 % of the costs of keeping up a home for yourself

Purpose. Complete Form W-4 so that your employer can withhold

and your dependent(s) or other qualifying individuals. See Pub.

the correct federal income tax from your pay. Consider completing

501, Exemptions, Standard Deduction, and Filing Information, for

a new Form W-4 each year and when your personal or financial

infomation.

situation changes.

Tax credits. You can take projected tax credits into account in

Exemption from withholding. If you are exempt, complete only

figuring your allowable number of withholding allowances. Credits

lines 1, 2, 3, 4 and 7 and sign the form to validate it. Your exemption

for child or dependent care expenses and the child tax credit may

for 2016 expires February 15, 2017. See Pub. 505, Tax Withholding

be claimed using the Personal Allowances Worksheet below. See

and Estimated Tax.

Pub. 505 for information on converting your other credits into

Note: If another person can claim you as a dependent on his or her

withholding allowances.

tax return, you cannot claim exemption from withholding if your

Nonwage income. If you have a large amount of nonwage income,

income exceeds $1,050 and includes more than $350 of unearned

such as interest or dividends, consider making estimated tax

income (for example, interest and dividends).

payments using Form 1040-ES, Estimated Tax for Individuals.

Otherwise, you may owe additional tax. If you have pension or

Exceptions. An employee may be able to claim exemption from

annuity income, see Pub. 505 to find out if you should adjust your

withholding even if the employee is a dependent, if the employee:

withholding on form W-4 or W-4P.

• is age 65 or older

Two earners or multiple jobs. If you have a working spouse or more

than one job, figure the total number of allowances you are entitled

• is blind, or

to claim on all jobs using worksheets from only one Form W-4.

• Will claim adjustments to income, tax credits; or itemized

Your withholding usually will be most accurate when all allowances

deductions, on his or her tax return.

are claimed on the Form W-4 for the highest paying job and zero

allowances are claimed on the others. See Pub. 505 for details.

The exceptions do not apply to supplemental wages greater than

Nonresident alien. If you are a nonresident alien, see Notice 1392,

$1,000,000.

Supplemental Form W-4 Instructions for Nonresident Aliens,

Basic instructions. If you are not exempt, complete the Personal

before completing this Form.

Allowances Worksheet below. The worksheets on page 2 further

Check your withholding. After your Form W-4 takes effect, use Pub.

adjust your withholding allowances based on itemized deductions,

505 to see how the amount you are having withheld compares to your

certain credits, adjustments to income, or two-earners/multiple jobs

projected total tax for 2016. See Pub. 505, especially if your earnings exceed

situations. Complete all worksheets that apply. However, you may

$130,000 (Single) or $180,000 (Married).

claim fewer (or zero) allowances. For regular wages, withholding must

Future developments. Information about any future developments

be based on allowances you claimed and may not be a flat amount or

affecting Form W-4 (such as legislation enacted after we release it)

percentage of wages.

will be posted at

Head of household. Generally, you may claim head of household

Tax Instructions And Worksheets Template - 2016 Page 2

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