Purpose. Complete Form W-4 so that your employer can withhold the correct federal income tax from your pay. Because your tax situation may change, you may want to refigure your withholding each year.
Exemption from withholding. If you are exempt, complete only lines 1, 2, 3, 4, and 7 and sign the form to validate it. Your exemption for 2007 expires February 16, 2008. See Pub. 505, Tax Withholding and Estimated Tax.
Note. You cannot claim exemption from withholding if (a) your 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.
Basic instructions. If you are not exempt, complete the Personal Allowances Worksheet below. The worksheets on page 2 adjust your withholding allowances based on itemized deductions, certain credits, adjustments to income, or two-earner/multiple job situations. Complete all worksheets that apply. However, you may claim fewer (or zero) allowances.
Head of household. Generally, you may claim head of household filing status on your tax return only if you are unmarried and pay more than 50% of the costs of keeping up a home for yourself and your dependent(s) or other qualifying individuals.
Tax credits. You can take projected tax credits into account in figuring your allowable number of withholding allowances. Credits for child or dependent care expenses and the child tax credit may be claimed using the Personal Allowances Worksheet below. See Pub. 919, How Do I Adjust My Tax Withholding, for information on converting your other credits into withholding allowances.
Nonwage income. If you have a large amount of nonwage income, such as interest or dividends, consider making estimated tax payments using Form 1040-ES, Estimated Tax for Individuals. Otherwise, you may owe additional tax. If you have pension or annuity income, see Pub. 919 to find out if you should adjust your withholding on Form W-4 or W-4P.
Two earners/Multiple jobs. If you have a working spouse or more than one job, figure the total number of allowances you are entitled to claim on all jobs using worksheets from only one Form W-4. Your withholding usually will be most accurate when all allowances are claimed on the Form W-4 for the highest paying job and zero allowances are claimed on the others.
Nonresident alien. If you are a nonresident alien, see the Instructions for Form 8233 before completing this Form W-4.
Check your withholding. After your Form W-4 takes effect, use Pub. 919 to see how the dollar amount you are having with held compares to your projected total tax for 2007. See Pub. 919, especially if your earnings exceed $130,000 (Single) or $180,000 (Married).
A. Enter “1” for yourself if no one else can claim you as a dependent
B. Enter “1” if : You are single and have only one job; or
C. Enter “1” for your spouse. But, you may choose to enter “-0-” if you are married and have either a working spouse or more than one job. (Entering “-0-” may help you avoid having too little tax withheld.)
D. Enter number of dependents (other than your spouse or yourself) you will claim on your tax return
E. Enter “1” if you will file as head of household on your tax return (see conditions under Head of household above)
F. Enter “1” if you have at least $1,500 of child or dependent care expenses for which you plan to claim a credit (Note. Do not include child support payments. See Pub. 503, Child and Dependent Care Expenses, for details.)
G. Child Tax Credit (including additional child tax credit). See Pub 972, Child Tax Credit, for more information.
H. Add lines A through G and enter total here. (Note. This may be different from the number of exemptions you claim on your tax return.) For accuracy, complete all worksheets that apply.
Whether you are entitled to claim a certain number of allowances or exemption from withholding is subject to review by the IRS. Your employer may be required to send a copy of this form to the IRS.
Note. If married, but legally separated, or spouse is a nonresident alien, check the “Single” box
Total number of allowances you are claiming (from line H above or from the applicable worksheet on page 2)
Additional amount, if any, you want withheld from each paycheck
I claim exemption from withholding for 2007, and I certify that I meet both of the following conditions for exemption.
Under penalties of perjury, I declare that I have examined this certificate and to the best of my knowledge and belief, it is true, correct, and complete.
Note. Use this worksheet only if you plan to itemize deductions, claim certain credits, or claim adjustments to income on your 2007 tax return.
1. Enter an estimate of yo ur 2007 itemized deductions. These include qualifying home mortgage interest, charitable contributions, state and local taxes, medical expenses in excess of 7.5% of your income, and miscellaneous deductions. (For 2007, you may have to reduce your itemized deductions if your income is over $156,400 ($78,200 if married filing separately). See Worksheet 2 in Pub. 919 for details.)
2. Enter:
3. Subtract line 2 from line 1. If zero or less, enter “-0-”
4. Enter an estimate of your 2007 adjustments to income, including alimony, deductible IRA contributions, and student loan interest
5. Add lines 3 and 4 and enter the total. (Include any amount for credits from Worksheet 8 in Pub. 919)
6. Enter an estimate of your 2007 nonwage income (such as dividends or interest)
7. Subtract line 6 from line 5. If zero or less, enter “-0-”
8. Divide the amount on line 7 by $3,400 and enter the result here. Drop any fraction
9. Enter the number from the Personal Allowances Worksheet, line H, page 1
10. Add lines 8 and 9 and enter the total here. If you plan to use the Two-Earners/Multiple Jobs Worksheet, also enter this total on line 1 below. Otherwise, stop here and enter this total on Form W-4, line 5, page 1
Note. Use this worksheet only if the instructions under line H on page 1 direct you here.
1. Enter the number from line H, p age 1 (or from line 10 above if you used the Deductions and Adjustments Worksheet)
2. Find the number in Table 1 below that applies to the LOWEST paying job and enter it here. However, if you are married filing jointly and wages from the highest paying job are $50,000 or less, do not enter more than “3.”
3. If line 1 is more than or equal to line 2, subtract line 2 from line 1. Enter the result here (if zero, enter “-0-”) and on Form W-4, line 5, page 1. Do not use the rest of this worksheet Note. If line 1 is less than line 2, enter “-0-” on Form W-4, line 5, page 1. Complete lines 4–9 below to calcula te the additional withholding amount necessary to avoid a year-end tax bill.
4. En ter the number from line 2 of this worksheet
5. Enter the number from line 1 of this worksheet
6. Subtract line 5 from line 4
7. Find the amount in Table 2 below that applies to the HIGHEST paying job and enter it here
8. Multiply line 7 by line 6 and enter the result here. This is the additional annual withholding needed
9. Divide line 8 by the number of pay periods remaining in 2007. For example, divide by 26 if you are paid every two weeks and you complete this form in December 2006. Enter the result here and on Form W-4, line 6, page 1. This is the additional amount to be withheld from each paycheck
If wages from LOWEST paying job are
$0 - $4,500
4,501 - 9,000
9,001 - 18,000
18,001 - 22,000
22,001 - 26,000
26,001 - 32,000
32,001 - 38,000
38,001 - 46,000
46,001 - 55,000
55,001 - 60,000
60,001 - 65,000
65,001 - 75,000
75,001 - 95,000
95,001 - 105,000
105,001 - 120,000
120,001 and over
Enter on line 2 above
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
$0 - $6,000
6,001 - 12,000
12,001 - 19,000
19,001 - 26,000
26,001 - 35,000
35,001 - 50,000
50,001 - 65,000
65,001 - 80,000
80,001 - 90,000
90,001 - 120,000
If wages from HIGHEST paying job are
$0 - $65,000
65,001 - 120,000
120,001 - 170,000
170,001 - 300,000
300,001 and over
Enter on line 7 above
$510
850
950
1,120
1,190
$0 - $35,000
35,001 - 80,000
80,001 - 150,000
150,001 - 340,000
340,001 and over
Privacy Act and Paperwork Reduction Act Notice. We ask for the information on this form to carry out the Internal Revenue laws of the United States. The Internal Revenue Code requires this information under sections 3402(f)(2)(A) and 6109 and their regulations. Failure to provide a properly completed form will result in your being treated as a single person who claims no withholding allowances; providing fraudulent information may also subject you to penalties. Routine uses of this information include giving it to the Department of Justice for civil and criminal litigation, to cities, states, and the District of Columbia for use in administering their tax laws, and using it in the National Directory of New Hires. We may also disclose this information to other countries under a tax treaty, to federal and state agencies to enforce federal nontax criminal laws, or to federal law enforcement and intelligence agencies to combat terrorism.
You are not required to provide the information requested on a form that is subject to the Paperwork Reduction Act unless the form displays a valid OMB control number. Books or records relating to a form or its instructions must be retained as long as their contents may become material in the administration of any Internal Revenue law. Generally, tax returns and return information are confidential, as required by Code section 6103.
The average time and expenses required to complete and file this form will vary depending on individual circumstances. For estimated averages, see the instructions for your income tax return.
If you have suggestions for making this form simpler, we would be happy to hear from you. See the instructions for your income tax return.
