Publication 505 - Tax Withholding And Estimated Tax (Page 9 of 49) in pdf

income, or two-earner/two-job situations. Com-

Two earners/two jobs. If you have a working

Form W-4 (2002)

plete all worksheets that apply. However, you

spouse or more than one job, figure the total

may claim fewer (or zero) allowances.

number of allowances you are entitled to claim

Purpose. Complete Form W-4 so your employer

Head of household. Generally, you may claim

on all jobs using worksheets from only one Form

can withhold the correct Federal income tax

head of household filing status on your tax

W-4. Your withholding usually will be most accu-

from your pay. Because your tax situation may

return only if you are unmarried and pay more

rate when all allowances are claimed on the

change, you may want to refigure your withhold-

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

Form W-4 for the highest paying job and zero

ing each year.

yourself and your dependent(s) or other qualify-

allowances are claimed on the others.

Exemption

from

withholding.

you

are

ing individuals. See line E below.

Nonresident alien. If you are a nonresident

exempt, complete only lines 1, 2, 3, 4, and 7 and

Tax credits. You can take projected tax credits

alien, see the Instructions for Form 8233 before

sign the form to validate it. Your exemption for

into account in figuring your allowable number of

completing this Form W-4.

2002 expires February 16, 2003. See Pub. 505,

withholding allowances. Credits for child or

Check your withholding. After your Form W-4

Tax Withholding and Estimated Tax.

dependent care expenses and the child tax

takes effect, use Pub. 919 to see how the dollar

Note: You cannot claim exemption from with-

credit may be claimed using the Personal

amount you are having withheld compares to

holding if (a) your income exceeds $750 and

Allowances Worksheet below. See Pub. 919,

your projected total tax for 2002. See Pub. 919,

includes more than $250 of unearned income

How Do I Adjust My Tax Withholding? for infor-

especially if you used the Two-Earner/Two-Job

(e.g., interest and dividends) and (b) another

mation on converting your other credits into

Worksheet on page 2 and your earnings exceed

person can claim you as a dependent on their

withholding allowances.

$125,000 (Single) or $175,000 (Married).

tax return.

Nonwage income. If you have a large amount of

Recent name change? If your name on line 1

Basic instructions. If you are not exempt, com-

nonwage income, such as interest or dividends,

differs from that shown on your social security

plete the Personal Allowances Worksheet

consider making estimated tax payments using

card, call 1-800-772-1213 for a new social secu-

below. The worksheets on page 2 adjust your

Form 1040-ES, Estimated Tax for Individuals.

rity card.

withholding

allowances

based

itemized

Otherwise, you may owe additional tax.

deductions,

certain

credits,

adjustments

Example 1.3

Personal Allowances Worksheet (Keep for your records.)

Enter “1” for yourself if no one else can claim you as a dependent

● You are single and have only one job; or

● You are married, have only one job, and your spouse does not work; or

Enter “1” if:

● Your wages from a second job or your spouse’s wages (or the total of both) are $1,000 or less.

Enter “1” for your spouse. But, you may choose to enter “-0-” if you are married and have either a working spouse or

more than one job. (Entering “-0-” may help you avoid having too little tax withheld.)

Enter number of dependents (other than your spouse or yourself) you will claim on your tax return

Enter “1” if you will file as head of household on your tax return (see conditions under Head of household above)

Enter “1” if you have at least $1,500 of child or dependent care expenses for which you plan to claim a credit

(Note: Do not include child support payments. See Pub. 503, Child and Dependent Care Expenses, for details.)

G Child Tax Credit (including additional child tax credit):

● If your total income will be between $15,000 and $42,000 ($20,000 and $65,000 if married), enter “1” for each eligible child plus 1 additional

if you have three to five eligible children or 2 additional if you have six or more eligible children.

● If your total income will be between $42,000 and $80,000 ($65,000 and $115,000 if married), enter “1” if you have one or two eligible children,

“2” if you have three eligible children, “3” if you have four eligible children, or “4” if you have five or more eligible children.

Add lines A through G and enter total here. Note: This may be different from the number of exemptions you claim on your tax return.

● If you plan to itemize or claim adjustments to income and want to reduce your withholding, see the Deductions

and Adjustments Worksheet on page 2.

For accuracy,

● If you have more than one job or are married and you and your spouse both work and the combined earnings

complete all

worksheets

from all jobs exceed $35,000, see the Two-Earner/Two-Job Worksheet on page 2 to avoid having too little tax

that apply.

withheld.

● If neither of the above situations applies, stop here and enter the number from line H on line 5 of Form W-4 below.

Cut here and give Form W-4 to your employer. Keep the top part for your records.

W-4

OMB No. 1545-0010

Employee’s Withholding Allowance Certificate

Form

2002

Department of the Treasury

For Privacy Act and Paperwork Reduction Act Notice, see page 2.

Internal Revenue Service

Type or print your first name and middle initial

Last name

Your social security number

John M.

Green

444

4444

Home address (number and street or rural route)

Single

Married

Married, but withhold at higher Single rate.

28 Fairway

Note: If married, but legally separated, or spouse is a nonresident alien, check the “Single” box.

City or town, state, and ZIP code

If your last name differs from that on your social security card,

Anytown, State

00000

check here. You must call 1-800-772-1213 for a new card

Total number of allowances you are claiming (from line H above or from the applicable worksheet on page 2)

Additional amount, if any, you want withheld from each paycheck

I claim exemption from withholding for 2002, and I certify that I meet both of the following conditions for exemption:

● Last year I had a right to a refund of all Federal income tax withheld because I had no tax liability and

● This year I expect a refund of all Federal income tax withheld because I expect to have no tax liability.

If you meet both conditions, write “Exempt” here

Under penalties of perjury, I certify that I am entitled to the number of withholding allowances claimed on this certificate, or I am entitled to claim exempt status.

Employee’s signature

(Form is not valid

John M. Green

January 4, 2002

Date

unless you sign it.)

Employer’s name and address (Employer: Complete lines 8 and 10 only if sending to the IRS.)

Office code

Employer identification number

(optional)

Cat. No. 10220Q

Chapter 1 Tax Withholding for 2002

Page 9

Publication 505 - Tax Withholding And Estimated Tax Page 9

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