How Do You Fill Out W-4 Forms Correctly?
“My name is Miranda Chook and I’m a CPA and we’re going to talk about the IRS W-4 form for allowances. Now this form is typically the form you fill out when you first start a job and you can revise it any time and one of the main differences between this form and other IRS forms is this one goes directly to your employer and what you’re doing is telling your employer how much of the salary you negotiated with your boss that you want them to withhold for you and remit to the IRS on your behalf. The goal is to have at least ninety percent of the taxes that you’re going to owe at the end of the year withheld during the year. Much less and you might be subject to penalties and taxes. Much more and you’re just giving the government an interest free loan instead of having that money work for you. Now the form itself is rather straight forward. Just your name, address, social security number, but one of the lines that’s a little trickier is line five which talks about the total number of allo
