Form W-4

W-4 is the tax form submitted by the employee to his or her employer. It includes information about the employee’s status, exemptions, standard deductions, as well as the taxpayer’s Social Security number. This form serves as the basis for the employer to withhold the exact amount of federal tax from the employee’s salary. It has a worksheet that allows taxpayers to determine the amount of tax to declare on W-4. Every time the taxpayer claims a withholding allowance, the amount of withholding tax to be deducted by the employer decreases.

It is essential to file W-4 form whenever the tax situation changes like marriage, birth of a child, home purchase, divorce and the like. Taxpayers may resubmit another W-4 to their employers to increase or decrease the amount of withholding tax.

Category: Tax return form, tax exemptions, and tax deductions. W-4 Form enables the employer to deduct the accurate amount of tax from the employee’s wages. The taxpayer can also claim exemption from withholding, and avail of tax credits and standard deductions.

Link to IRS website:


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