W4 Form for 2010 & 2011: A Quick and Simple Explanation

The 2011 W4 form is not that much different from the one last year. It is recommended that you review the new form and if you have undergone any major changes you might want to fill out a new one. The 2011 W4 is required for any person employed in the United States. This form, if filled out properly, is good from year to year and employers are required to report the value of any type of health insurance you are receiving (although it is not considered income).

The W4 tax form is universal to all companies in the US. This form is used to determine what percentage of your income goes to the government. The formula is that for every allowance the amount is reduced by a certain percentage. This will also decrease the amount, if any, you are entitled to at the end of the year. For those who are working at more than one job it is possible to only claim part of the allowance at each place of employment.

The form changes very little and is good for years if you have nothing different to claim. If you have an addition to the famil,y then you will need to fill out another form to include the dependant as an allowance. The forms are fairly simple and come with instructions on how to fill them out. It even has instructions for you on how to figure out the number of allowances that you should claim.

The worksheets are in plain English and give step by step instructions along with examples of what each line means. One of the worksheets is for personal allowances and they include a second for itemized deductions. You can claim zero allowances at the risk of having to pay taxes at the end of the year. The zero allowance and exemptions are a viable option only if you earn very little in a year.

You can discuss this with your employer or even a tax professional for a more detailed explanation of the W4 and its use. You can also check your withholdings by using Pub.919 this shows your projection as compared to the actual amount being withheld. You can adjust the next year’s form accordingly.

For more information you can contact the local office of Internal Revenue or visit them online. There are also several Tax Offices with online databases that hold valuable information.

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