Investor Glossary-w-4 formInvestor Glossary-w-4 formInvestor Glossary-w-4 formInvestor Glossary-w-4 formInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

W-4 Form

The HTML to link to this page
 

A W-4 form is a US federal tax form on which the employee defines the number and nature of personal exemptions from income tax they are claiming. The W-4 form is then used by the employer to determine the amount of federal income tax withholding from the employee's paycheck. The IRS advises that employees file a new W-4 form whenever their tax liability circumstances change. The W-4 form comes with the Personal Allowances Worksheet and the Deductions and Adjustments Worksheet which employees can use to calculate tax allowances and adjustments that they enter into the W-4 form. Typically, a single person working one job whom nobody can claim as a dependent will claim one allowance on a W-4 form (i.e. enter "1" on line 5 of W-4 form). Additional allowances can be claimed on the W-4 form for situations where the employee is head of their household, has dependents, has child care expenses or a child tax credit. Further adjustments and deductions can be specified on the W-4 form if the employee has more jobs than one or lives in a household with multiple earners (i.e. working spouse). An employee exempt from withholding is still required to fill certain section of the W-4 form (i.e. lines 1 thru 4 and line 7) and sign it. The W-4 form also contains the employee's private and contact details as well as their Social Security Number. The W-4 form is named the Employee's Withholding Allowance Certificate.



Rate this W-4 Form definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: reverse mortgage, deferred revenue, 144a, current ratio, required rate of return, option premium, implied volatility, class C shares, ex-dividend, inflation, per diem, balance sheet, in escrow, cancelled check, margin rate, FICO score, stock split, 1035 exchange, average price per share, retained earnings, real GDP, 1031 exchange, Zero Cost Collar, ex-dividend date, 401a, LIBOR, open position, annual return, stock market close, deferred tax, minority interest, covered put, irrevocable trust, VIX, FTSE, liquidity ratio, wholly-owned subsidiary, APR, diluted share, limit order, command economy, debt service coverage, quality assurance, EBITDA, Key Rate Duration, phantom income, risk management, labor relations, dividends payable


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use