Tax Resources

W-4 Form

What is a w-4 tax form?

The W-4 tax form is called the Employee's Withholding Allowance Certificate. Every time a taxpayer starts a new job, he or she will have to fill out the W-4 form for the employer. The employer then uses the information on the W-4 form to withhold taxes on employee's wages. Some employers have the employees fill out the W-4 form each year. In general it is a good idea to update your W-4 form yearly to ensure that the correct amount is withheld and not too much or too little.

Why do I have to fill out the W-4 form? and why are taxes withheld?

Taxes are withheld because the federal income tax is the pay as you earn tax and cannot wait till the end of the tax year to pay. The tax laws make income earners pay taxes on the amount earned as soon as they receive the income. Most federal income tax is paid on one of 2 ways:

  • withheld from your wages or other income (shown in W-2 form), or
  • you make estimated tax payments (if you do not pay enough tax during the year, you may owe a penalty as well as the tax)
What does a w-4 form look like?

W-4 form

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