Form W-4- Employee's Withholding Allowance Certificate

You usually have to fill this out on the first day at a new job. This form tells the employer how much to withhold from your paycheck for federal taxes. It is a 2 page form which is actually pretty complicated especially if you are married and both spouses work, and many people don't understand it. The form calculates the number of allowances you are claiming. The more allowances you claim, the more take home pay you will receive in your paycheck because the federal withholding will be less. It is usually better for the higher paid spouse to claim all of the applicable allowances and the lower paid spouse to claim zero allowances. I recommend that if both spouses work, that you check the married box but withhold at the higher single rate. The goal is to try to break even when you file your tax return. You should consider completing a new form W-4 every year to fine tune your withholding.  I can prepare a W-4 along with your tax return if you request it.