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Tips for Filling Out a W4 Form for 2014 The purpose of the W4 form is so your employer knows how much money they need to deduct from your check for federal income tax. This is a form that you have to fill out yourself and you should be completely honest when doing so. The IRS suggests that you fill out a W-4 form every year and/or when you have a change in your income situation. The form also tells you when you are exempt and in that case you would fill it out as instructed (see Publication 505). Tips for Filling out the W-4 Form Filling out the W4 form is something that can be confusing for some people. So, we have taken the time to provide you with some useful tips that should make filling the form out a breeze. 1. If you are being claimed by someone or someone is eligible to claim you on their tax return you are not eligible to claim an exemption from withholding your income if you make more than $950.00 and more than $300.00 of that is unearned income, i.e. dividends or interest. 2. If you are not exempt you are also responsible for filling out the Personal Allowances Worksheet. 3. There are special considerations regarding some of the tax credits, multiple jobs, income adjustments, and itemized deductions. 4. You can claim as many allowances as you want even though it is required that you complete all of the worksheets that are applicable to you. 5. Specific instructions are available for children, dependents and the head of household. You will also find information regarding how to file. 6. If you have a large amount of unearned income it is suggested that you make estimated tax payments using form 1040-es. 7. If you have multiple jobs or are married it is suggested that you deduct your children from the paycheck of the person who makes the most money. 8. If you make more than $130,000 or are a couple and make more than $180,000 see IRS Publication 919 after your W4 is effective. Free Online Calculator You can use the W4 calculator can help determine how many withholding allowances are right for you and whether or not you should increase or decrease the number you are claiming. Deciding exactly how many withholding allowances you should claim on your W4 can be stressful. You want to be sure you are withholding enough so you don't owe a large amount of taxes at the end of the year, but you also don't want too much deducted leaving you with too little money in your paycheck. The Benefits of Filing Your Taxes with Turbo Tax It is recommended that you file your taxes with TurboTax as it will make the tax season ten times easier. When filing with TurboTax they will ask you a few questions regarding your tax situation and have you fill out the correct tax forms. They will let you know which tax deductions and credits are applicable to you so you can keep the maximum amount of your money. You can even use their free tax refund calculator to see how much money you can expect to get back. Find our more about : W4 Tax Form
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