02/05/2024
If you’re wondering why federal taxes are not being taken out, you may want to take a look at your W4.
Step 1: Personal information
**disclaimer just because you have dependents does not automatically qualify you for head of household filing status. Consult with your tax professional to determine your filing status if unsure.
Step 2: Complete only if you work multiple jobs.
Step 3: If your annual is income is less than $200,000 ($400,000 if married filing joint) multiply number of qualifying children under 17 by $2,000
Ex: 1 dependent =$2,000
Ex: 2 dependents = $4,000
Ex: 3 dependents = $6000
& so forth.
Depending on yearly income I higly suggest my clients exceeding the AGI limits for their filing status to leave this at $0 or no higher than $2,000.
Step 3 Other Dependents: is to be used for children ages 17-24 if they are in school or disabled.
Step 4: Although its optional this is very crucial if you exceed the AGI limits for your filing status each tax year.
Line 4C is where additional monies can be withheld from each paycheck. I advise my clients to select an amount thats comfortable for them each pay period. (ex: $25 , $50, $75 etc)
FYI : over $50K I highly suggest $100+ for extra withholding line 4C