How to Maximize Paycheck With Tax Exemptions
- 1). Ask your employer for your most recent W-4 form to take a look at the exemptions on record. Obtain a new W-4 form from your employer.
- 2). Check the "married" box on Line 3 of the form if you have had a change in marital status such as getting married or qualifying as a widow.
- 3). Complete the personal allowances worksheet on Page 1 of the form to help you decide the maximum number of exemptions you can claim on the W-4 form. Enter the number "1" for yourself on Line A and "1" for your spouse on Line C.
- 4). Enter the number "1" on Line B of the worksheet if any of the following applies: You are single and have only one job, you are married with a job and your spouse does not work or you or your spouse's individual or combined wages from a second job are below $1,500 annually.
- 5). Enter the number "1" on Line E of the worksheet if you are single and can claim head of household status. Enter the number "1" on Line F if you plan to claim a credit of $1,900 of child care or dependent care expenses.
- 6). Enter the number "1" on Line G if you make less than $61,000 annually ($90,000 if married). Also, enter the number "1" for each eligible child if your income is between $61,000 and $84,000 (between $90,000 and $119,000 if married). Enter an addition exemption for any eligible child beyond the sixth eligible child (the seventh child if all six children are eligible)
- 7). Add all of the number "1s" from Lines A through G. Enter the total on Line H of the worksheet.Complete the new W-4 form, listing the total from line H on Line 5 of the form. Sign the form and give it to your employer.
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