Unit: Financial literacy

Aim: How is a W-4 Form completed?

Mitchell Almonte

CTEA H.S.

How does an employer know how much taxes to withhold from your paycheck?

A. They will withhold as much as possibleB. You inform them when you’re hiredC. The IRS informs themD. They don’t withhold anything

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PRE-TEST

Where can you find a W-4 form?A. Your employerB. The IRSC. Purchase from a forms vendorD. Both A and BE. None of the above

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How do you complete a W-4 form?

A. Copy from a friend that has done it before

B. Tell the HR person to fill it out for you by entering default values

C. Download a pre-filled form from the internet

D. Fill out your personal information and circumstances

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Objectives: By the end of this lesson students will be able to…

1. Explain the function of a W-4 form

2. Download a W-4 form from the IRS

website

3. Fill out the contents of a W-4 form

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What is the IRS W-4 form? It’s the Employee's Withholding

Allowance Certificate Tells your employer how much pay

you want withheld for your income tax.

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Why is a W-4 form important? It certifies that you will be legally

employed It ensures that you will be covered by

Workman’s Compensation

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Where can I find a W-4 form?

From your employer

OR…

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Where can I find a W-4 form?…download one from the IRS website…

http://www.irs.gov/

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How do I complete a W-4 form?

Follow these easy directions…

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Complete lines 1 & 2…

Provide your name, address, and Social Security number…

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Complete line 3…

Check box for marital status

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Complete lines 5 & 6…

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• Insert the number of dependents you will claim.

• If under 18 and are already claimed by another person, you must claim “0”

How do I figure how many allowances to claim?

Complete the Personal Allowances Worksheet

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How do I determine how many allowances to claim?Complete lines A through G…

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How do I determine how many allowances to claim?Now add the number of dependents

you have claimed and write the total on line H…

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How do I determine how many allowances to claim?

You will probably claim either a ‘0’ or ‘1’

AND…

with “0”, the highest amount will be withheld

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– but you will get $ back later…!

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Am I EXEMPT from paying taxes?

You cannot claim exemption from withholding if:

(a) your yearly income exceeds $850 and includes more than $300 of unearned income (for example, interest and dividends,) and

(b) another person can claim you as a dependent on their tax return.

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NONO

If you are ‘exempt’ from paying taxes…Skip lines 5 & 6, complete line 7!!

If you earn less than $850 in the year and you have less that $300 of unearned income from interest, and no one can claim you as a dependent on their tax return, then…….

YOU ARE EXEMPT… So, skip lines 5 and 6 and

write “EXEMPT” on line 7.

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YESYES

Don’t forget to…

Print, sign, and date the form…

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You are done !

Give the completed W-4 form to your employer.

Your employer will complete lines 8, 9, 10.

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Tax Help : How to Fill Out W-4 Forms Correctly

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How does an employer know how much taxes to withhold from your paycheck?A. They will withhold as much as possibleB. You inform them when you’re hiredC. The IRS tells informs themD. They don’t withhold anything

B. You inform them by filling out a W-4 form

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POST TEST

Where can you find a W-4 form?A. Your employerB. The IRSC. Purchase from a forms vendorD. Both A and BE. None of the above

D. Your employer’s human resources representative or the IRS website have the W-4 form for free

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How do you complete a W-4 form?

A. Copy from a friend that has done it before

B. Tell the HR person to fill it out for you by entering default values

C. Download a pre-filled form from the internet

D. Fill out your personal information and circumstances

D. The W-4 form determines the withholdings that are best for you. There is no set format that works for everyone.

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How does an employer know how much taxes to withhold from your paycheck?A. They will withhold as much as

possibleB. You inform them when you’re hiredC. The IRS informs themD. They don’t withhold anything

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Where can you find a W-4 form?A. Your employerB. The IRSC. Purchase from a forms vendorD. Both A and BE. None of the above

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How do you complete a W-4 form?

A. Copy from a friend that has done it before

B. Tell the HR person to fill it out for you by entering default values

C. Download a pre-filled form from the internet

D. Fill out your personal information and circumstances

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Your homework assignment…1. Go to http://www.irs.gov/ 2. Download a W-4 form.3. Complete the W-4 form.4. Submit completed form to your

teacher for a grade!

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