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How to Fill Out a 2012 Form W-4
Posted By Miranda Marquit On 07/03/2012 @ 7:10 am In Taxes | 1 Comment
When go to work for “the man,” you will be expected to fill out a Form W-4. This is a form provided by the IRS that helps employers figure out how much money should be taken out of each paycheck and sent on to Uncle Sam. The way you fill out your W-4 determines how much of your paycheck is withheld. And how much of your paycheck is withheld determines how much money you owe in April, or how big of a refund you get back .
For many, the sweet spot is figuring out the withholding so that you don’t owe a lot of money come tax time, but also so that you don’t have a huge refund, which is tantamount to giving the government an interest-free loan. The idea is to get yourself as close to 0 as possible. If you want to adjust your withholding  to better reflect your tax liability, all you have to do is fill out and turn in a new W-4.
Filling out your Form W-4 is fairly straightforward if you work through it methodically, and read the instructions. You will need to fill out information about your name, address, Social Security number, and filing status (married, single, etc.). Once you have that information, you can fill out the applicable worksheets to determine your allowances. The more allowances you have, the lower your withholding amount will be. You claim allowances for yourself, and for your spouse and dependents (if applicable). If you claim no allowances, the highest amount of tax possible at your income level will be held aside.
There are three worksheets that come with the Form W-4 that can help your employer figure out how much to withhold:
Once you have the information you need from the worksheets, you can complete your form. If you are exempt, you can show that you won’t have tax liability, and nothing will be withheld. Otherwise, you need to put in your total number of allowances on line 5. This will come from Line H on Worksheet 1 or from the appropriate line on one of the other worksheets. Next, you decide if you need to withhold an additional amount. If there are multiple earners, this information will come from that worksheet. You can also decide to withhold an extra amount for your own purposes.
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 how big of a refund you get back: http://www.bargaineering.com/articles/average-tax-refund.html
 adjust your withholding: http://www.bargaineering.com/articles/adjust-tax-withholding.html
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