| Pub. 505, Tax Withholding and Estimated Tax |
2006 Tax Year |
1.
Tax Withholding for 2007
New Form W-4 required in certain bankruptcy cases. You may need to file a new W-4 to adjust your withholding so that the correct amount of tax is withheld if you file for Chapter
11 bankruptcy and
your earnings after the date you file for bankruptcy are included in the income of your bankruptcy estate. You will find more
information in
Changing Your Withholding later on this page.
See chapter 2 for a more detailed list of changes for 2007.
This chapter discusses income tax withholding on:
This chapter explains in detail the rules for withholding tax from each of these types of income. The discussion of salaries
and wages includes
an explanation of how to complete Form W-4.
This chapter also covers backup withholding on interest, dividends, and other payments.
Useful Items - You may want to see:
Form (and Instructions)
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W-4
Employee's Withholding Allowance Certificate
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W-4P
Withholding Certificate for Pension or Annuity Payments
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W-4S
Request for Federal Income Tax Withholding From Sick Pay
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W-4V
Voluntary Withholding Request
See chapter 5 of this publication for information about getting these publications and forms.
Income tax is withheld from the pay of most employees. Your pay includes your regular pay, bonuses,
commissions, and vacation allowances. It also includes reimbursements and other expense allowances paid under a nonaccountable
plan. See
Supplemental Wages, on page 13, for definitions of accountable and nonaccountable plans.
If your income is low enough that you will not have to pay income tax for the year, you may be exempt from withholding. This
is explained under
Exemption From Withholding, starting on page 11.
Military retirees.
Military retirement pay is treated in the same manner as regular pay for income tax withholding purposes, even though
it is treated as a pension or
annuity for other tax purposes.
Household workers.
If you are a household worker, you can ask your employer to withhold income tax from your pay. A household worker
is an employee who performs
household work in a private home, local college club, or local fraternity or sorority chapter.
Tax is withheld only if you want it withheld and your employer agrees to withhold it. If you do not have enough income
tax withheld, you may have
to pay estimated tax, as discussed in chapter 2.
Farmworkers.
Generally, income tax is withheld from your cash wages for work on a farm unless your employer both:
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Pays you cash wages of less than $150 during the year, and
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Has expenditures for agricultural labor totaling less than $2,500 during the year.
You can ask your employer to withhold income tax from noncash wages and other wages not subject to withholding. If
your employer does not agree to
withhold tax, or if not enough is withheld, you may have to pay estimated tax, as discussed in chapter 2.
Determining Amount of Tax Withheld Using Form W-4
The amount of income tax your employer withholds from your regular pay depends on two things.
Form W-4 includes three types of information that your employer will use to figure your withholding.
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Whether to withhold at the single rate or at the lower married rate.
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How many withholding allowances you claim (each allowance reduces the amount withheld).
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Whether you want an additional amount withheld.
Note.
You must specify a filing status and a number of withholding allowances on Form W-4. You cannot specify only a dollar amount
of withholding.
When you start a new job, you must fill out a Form W-4 and give it to your employer. Your employer should have copies of the
form. If you need to
change the information later, you must fill out a new form.
If you work only part of the year (for example, you start working after the beginning of the year), too much tax may be withheld.
You may be able
to avoid overwithholding if your employer agrees to use the part-year method, explained on page 8.
Employee also receiving pension income.
If you receive pension or annuity income and begin a new job, you will need to file Form W-4 with your new employer.
However, you can choose to
split your withholding allowances between your pension and job in any manner. See Publication 919 for more information.
Changing Your Withholding
Events during the year may change your marital status or the exemptions, adjustments, deductions, or credits you expect to
claim on your tax
return. When this happens, you may need to give your employer a new Form W-4 to change your withholding status or number of
allowances.
If the event changes your withholding status or the number of allowances you are claiming, you must give your employer a new
Form W-4 within 10
days after either of the following.
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Your divorce, if you have been claiming married status.
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Any event that decreases the number of withholding allowances you can claim.
Events that will decrease the number of withholding allowances you can claim include the following.
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You have been claiming an allowance for your spouse, but you get divorced or your spouse begins claiming his or her own allowance
on a
separate Form W-4.
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You have been claiming an allowance for a dependent who is a qualifying relative, but you no longer expect to provide more
than half the
dependent's support for the year.
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You have been claiming an allowance for your qualifying child, but you now find that he or she will provide more than half
of his or her own
support during the year.
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You have been claiming allowances for your expected deductions, but you now find they will be less than expected.
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You filed for bankruptcy under Chapter 11 of the Bankruptcy Code and you may not be entitled to the same number of allowances
or the estate
may be taxed at a higher rate.
Generally, you can submit a new Form W-4 whenever you wish to change the number of your withholding allowances for any other
reason.
If you change the number of your withholding allowances, you can request that your employer withhold using the cumulative
wage method, explained on
page 8.
Changing your withholding for 2008.
If events in 2007 will decrease the number of your withholding allowances for 2008, you must give your employer a
new Form W-4 by December 1, 2007.
If an event occurs in December 2007, submit a new Form W-4 within 10 days. Events that will decrease the number of your allowances
include the
following.
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You claimed allowances for 2007 based on child care expenses, moving expenses, or large medical expenses, but you will not
have these
expenses in 2008.
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You have been claiming an allowance for your spouse, but he or she died in 2007.
Note.
Because you can file a joint return for 2007, your spouse's death will not affect the number of your withholding allowances
until 2008. You will
have to change from married to single status for 2008, unless you can file as a qualifying widow or widower because you have
a dependent child, or you
remarry.
You must file a new Form W-4 showing single status by December 1 of the last year you are eligible to file as qualifying widow
or widower.
Checking Your Withholding
After you have given your employer a Form W-4, you can check to see whether the amount of tax withheld from your pay is too
little or too much. See
Publication 919 on page 8. If too much or too little tax is being withheld, you should give your employer a new Form W-4 to change your
withholding.
Note.
You cannot give your employer a payment to cover federal income tax withholding on salaries and wages for past pay periods
or a payment for
estimated tax.
Completing Form W-4 and Worksheets
When reading the following discussion, you may find it helpful to refer to the filled-in Form W-4 on pages 9 and 10.
Marital Status (Line 3 of Form W-4)
There is a lower withholding rate for people who qualify to check the “Married” box on line 3 of Form W-4. Everyone else must have tax
withheld at the higher single rate.
Single.
You must check the “ Single” box if any of the following applies.
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You are single. If you are divorced, or separated from your spouse under a court decree of separate maintenance, you are considered
single.
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You are married, but neither you nor your spouse is a citizen or resident of the United States.
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You are married, either you or your spouse is a nonresident alien, and you have not chosen to have that person treated as
a resident alien
for tax purposes. For more information, see Nonresident Spouse Treated as a Resident in chapter 1 of Publication 519.
Married.
You qualify to check the “ Married” box if any of the following applies.
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You are married and neither you nor your spouse is a nonresident alien. You are considered married for the whole year even
if your spouse
died during the year.
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You are married, either you or your spouse is a nonresident alien, and you have chosen to have that person treated as a resident
alien for
tax purposes. For more information, see Nonresident Spouse Treated as a Resident in chapter 1 of Publication 519.
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You expect to be able to file your return as a qualifying widow or widower. You usually can use this filing status if your
spouse died
within the previous 2 years and you provide more than half the cost of keeping up a home that was the main home for you and
your dependent child for
the entire year. However, you must file a new Form W-4 showing your filing status as single by December 1 of the last year
you are eligible to file as
a qualifying widow or widower. For more information on this filing status, see Qualifying Widow(er) With Dependent Child under Filing
Status in Publication 501, Exemptions, Standard Deduction, and Filing Information.
Married, but withhold at higher single rate.
Some married people find that they do not have enough tax withheld at the married rate. This can happen, for example,
when both spouses work. To
avoid this, you can check the “ Married, but withhold at higher Single rate” box (even if you qualify for the married rate). Also, you may find
that more tax is withheld if you fill out the Two-Earners/Multiple Jobs Worksheet, explained on page 8.
Withholding Allowances (Line 5 of Form W-4)
The more allowances you claim on Form W-4, the less income tax your employer will withhold. You will have the most tax withheld
if you claim
“0” allowances. The number of allowances you can claim depends on the following factors.
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How many exemptions you can take on your tax return.
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Whether you have income from more than one job.
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What deductions, adjustments to income, and credits you expect to have for the year.
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Whether you will file as head of household.
If you are married, it also depends on whether your spouse also works and claims any allowances on his or her own Form W-4.
Form W-4 worksheets.
Form W-4 has worksheets to help you figure how many withholding allowances you can claim. The worksheets are for your
own records. Do not give them
to your employer.
Complete only one set of Form W-4 worksheets, no matter how many jobs you have. If you are married and will file a
joint return, complete only one
set of worksheets for you and your spouse, even if you both earn wages and must each give a Form W-4 to your employers. Complete
separate sets of
worksheets only if you and your spouse will file separate returns.
If you are not exempt from withholding (see Exemption From Withholding, starting on page 11), complete the Personal Allowances Worksheet
on page 1 of the form. Also, use the worksheets on page 2 of the form to adjust the number of your withholding allowances
for itemized deductions and
adjustments to income, and for two-earner or multiple-job situations. If you want to adjust the number of your withholding
allowances for certain tax
credits, use the Deductions and Adjustments Worksheet on page 2 of Form W-4, even if you do not have any deductions or adjustments.
Complete all worksheets that apply to your situation. The worksheets will help you figure the maximum number of withholding
allowances you are
entitled to claim so that the amount of income tax withheld from your wages will match, as closely as possible, the amount
of income tax you will owe
at the end of the year.
Multiple jobs.
If you have income from more than one job at the same time, complete only one set of Form W-4 worksheets. Then split
your allowances between the
Forms W-4 for each job. You cannot claim the same allowances with more than one employer at the same time. You can claim all
your allowances with one
employer and none with the other(s), or divide them any other way.
Married individuals.
If both you and your spouse are employed and expect to file a joint return, figure your withholding allowances using
your combined income,
adjustments, deductions, exemptions, and credits. Use only one set of worksheets. You can divide your total allowances any
way, but you cannot claim
an allowance that your spouse also claims.
If you and your spouse expect to file separate returns, figure your allowances using separate worksheets based on
your own individual income,
adjustments, deductions, exemptions, and credits.
Alternative method of figuring withholding allowances.
You do not have to use the Form W-4 worksheets if you use a more accurate method of figuring the number of withholding
allowances.
The method you use must be based on withholding schedules, the tax rate schedules, and the 2007 Estimated Tax Worksheet
in chapter 2. It must take
into account only the items of income, adjustments to income, deductions, and tax credits that are taken into account on Form
W-4.
You can use the number of withholding allowances determined under an alternative method rather than the number determined
using the Form W-4
worksheets. You must still give your employer a Form W-4 claiming your withholding allowances.
Employees who are not citizens or residents.
If you are neither a citizen nor a resident of the United States, you usually can claim only one withholding allowance.
However, this rule does not
apply if you are a resident of Canada or Mexico, or if you are a U.S. national. It also does not apply if your spouse is a
U.S. citizen or resident
and you have chosen to be treated as a resident of the United States. Special rules apply to residents of Korea and India.
For more information, see
Withholding From Compensation in chapter 8 of Publication 519.
Personal Allowances Worksheet
Use the Personal Allowances Worksheet on page 1 of Form W-4 to figure your withholding allowances based on all of the following
that apply.
Exemptions (worksheet lines A, C, and D).
You can claim one withholding allowance for each exemption you expect to claim on your tax return.
Self.
You can claim an allowance for your exemption on line A unless another person can claim an exemption for you on his
or her tax return. If another
person is entitled to claim an exemption for you, you cannot claim an allowance for your exemption even if the other person
will not claim your
exemption or the exemption will be reduced.
Spouse.
You can claim an allowance for your spouse's exemption on line C unless your spouse is claiming his or her own exemption
or another person can
claim an exemption for your spouse. Do not claim this allowance if you and your spouse expect to file separate returns.
Dependents.
You can claim one allowance on line D for each exemption you will claim for a dependent on your tax return.
Reduction of personal allowances. For 2007, your deduction for personal exemptions on your tax return is reduced if your adjusted gross
income (AGI) is more than the AGI shown below for your filing status.
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Single
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$156,400
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Married filing jointly or qualifying widow(er)
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$234,600
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Married filing separately
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$117,300
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Head of household
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$195,500
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If you expect your AGI to be more than that amount, use Worksheet 1-1 (below) to figure your reduced number of personal allowances
on lines A, C,
and D of the Personal Allowances Worksheet.
Worksheet 1-1. Personal Allowances Worksheet (Form W-4) Reduction of Personal Allowances if AGI Above Phaseout Threshold
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1.
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Enter the total number of allowances on lines A, C, and D of the Personal Allowances
Worksheet without regard to the phaseout rule
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1.
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2.
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Enter your expected AGI
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2.
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3.
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Enter:
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$156,400 if single
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$234,600 if married filing jointly or qualifying widow(er)
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$117,300 if married filing separately
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$195,500 if head of household
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3.
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4.
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Subtract line 3 from line 2
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4.
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5.
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Divide line 4 by $125,000 ($62,500 if married filing separately). Enter the result as a
decimal
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5.
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6.
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Multiply line 1 by line 5. If the result is not a whole number, increase it to the next
higher whole number
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6.
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7.
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Divide line 6 by 1.5
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7.
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8.
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Subtract line 7 from line 1. The total of the numbers you enter on lines A, C, and D of
the Personal Allowances Worksheet cannot be more than this amount
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8.
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Only one job (worksheet line B).
You can claim an additional withholding allowance if any of the following
apply for 2007.
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You are single, and you have only one job at a time.
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You are married, you have only one job at a time, and your spouse does not work.
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Your wages from a second job or your spouse's wages (or the total of both) are $1,000 or less.
If you qualify for this allowance, enter “ 1” on line B of the worksheet.
Head of household filing status (worksheet line E).
You can file as head of household if you are unmarried and pay more than half the cost of keeping up a home that:
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Was the main home for all of 2007 of your parent whom you can claim as a dependent, or
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You lived in for more than half the year with your qualifying child or any other person you can claim as a dependent.
For more information, see Publication 501.
If you expect to file as head of household on your 2007 tax return, enter “ 1” on line E of the worksheet.
Child and dependent care credit (worksheet line F).
Enter “ 1” on line F if you expect to claim a credit for at least $1,500 of qualifying child or dependent care expenses on your 2007
return.
Generally, qualifying expenses are those you pay for the care of your dependent who is your qualifying child under age 13
or for your spouse or
dependent who is not able to care for himself or herself so that you can work or look for work. For more information, get
Publication 503.
Instead of using line F, you can choose to take the credit into account on line 5 of the Deductions and Adjustments
Worksheet, as explained under
Tax credits on page 7.
Child tax credit (worksheet line G).
If your total income will be less than $57,000 ($85,000 if married), enter “ 2” on line G for each eligible child.
If your total income will be between $57,000 and $84,000 ($85,000 and $119,000 if married), enter “ 1” on line G for each eligible child plus
“ 1” additional if you have four or more eligible children.
An eligible child is any child:
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Who is your son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, or a descendant of any of them
(for example,
your grandchild),
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Who was under age 17 at the end of 2007,
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Who did not provide over half of his or her own support for 2007,
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Who lived with you for more than half of 2007, and
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Who was a U.S. citizen, U.S. national, or a resident of the United States.
For more information about the child tax credit, see the instructions in your Form 1040 or Form 1040A tax package.
Instead of using line G, you can choose to take the credit into account on line 5 of the Deductions and Adjustments
Worksheet, as explained under
Tax credits on page 7.
Total personal allowances (worksheet line H).
Add lines A through G and enter the total on line H. If you do not use either of the
worksheets on the back of Form W-4, enter the number from line H on line 5 of Form W-4.
Deductions and Adjustments Worksheet
Use the Deductions and Adjustments Worksheet on page 2 of Form W-4 only if you plan to itemize your deductions, claim certain
credits, or claim
adjustments to the income on your 2007 tax return and you want to reduce your withholding.
Use the amount of each item you can reasonably expect to show on your return. However, do not use more than:
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The amount shown for that item on your 2006 return (or your 2005 return if you have not yet filed your 2006 return), plus
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Any additional amount related to a transaction or occurrence (such as the signing of an agreement or the sale of property)
that you can
prove has happened or will happen during 2006 or 2007.
Do not include any amount shown on your last tax return that has been disallowed by the IRS.
Example.
On June 30, 2006, you bought your first home. On your 2006 tax return, you claimed itemized deductions of $6,600, the total
mortgage interest and
real estate tax you paid during the 6 months you owned your home. Based on your mortgage payment schedule and your real estate
tax assessment, you can
reasonably expect to claim deductions of $13,200 for those items on your 2007 return. You can use $13,200 to figure the number
of your withholding
allowances for itemized deductions.
Not itemizing deductions.
If you expect to claim the standard deduction on your tax return, skip lines 1 and 2, and enter “ 0” on line 3 of the worksheet.
Itemized deductions (worksheet line 1).
Enter your estimated total itemized deductions on line 1 of the worksheet.
Listed below are some of the deductions you can take into account when figuring additional withholding allowances
for 2007. You normally claim
these deductions on Schedule A of Form 1040.
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Medical and dental expenses that are more than 7.5% of your 2007 AGI (defined under AGI on this page).
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State and local income or sales taxes and property taxes.
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Deductible home mortgage interest.
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Investment interest up to net investment income.
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Charitable contributions.
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Casualty and theft losses that are more than 10% of your AGI.
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Fully deductible miscellaneous itemized deductions, including:
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Impairment-related work expenses of persons with disabilities,
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Federal estate tax on income in respect of a decedent,
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Repayment of more than $3,000 of income held under a claim of right that you included in income in an earlier year because
at the time you
thought you had an unrestricted right to it,
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Unrecovered investments in an annuity contract under which payments have ceased because of the annuitant's death,
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Gambling losses up to the amount of gambling winnings reported on your return, and
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Casualty and theft losses from income-producing property.
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Other miscellaneous itemized deductions that are more than 2% of your AGI, including:
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Unreimbursed employee business expenses, such as educational expenses, work clothes and uniforms, union dues and fees, and
the cost of
work-related small tools and supplies,
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Safe deposit box rental,
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Tax counsel and assistance, and
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Certain fees paid to an IRA trustee or custodian.
AGI.
For purposes of the worksheet your AGI is your estimated total income for 2007 minus
any estimated adjustments to income (discussed later on this page) that you include on line 4 of the worksheet.
Phaseout of itemized deductions. For 2007, your total itemized deductions may be phased out (reduced) if your AGI is more than $156,400
($78,200 if married filing separately). If you expect your AGI to be more than that amount, use Worksheet 1-2 (below) to figure
the amount to enter on
line 1 of the Deductions and Adjustments Worksheet.
Worksheet 1-2. Deductions and Adjustments Worksheet (Form W-4)—Line 1 Phaseout of Itemized Deductions
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1.
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Enter the estimated total of your itemized deductions
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1.
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2.
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Enter the amount included in line 1 for medical and dental expenses,
investment interest, casualty or theft losses, and gambling losses
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2.
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3.
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Is the amount on line 2 less than the amount on line 1?
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□ No. Stop here. Your deduction is not limited. Enter the amount from
line 1 above on line 1 of the Deductions and Adjustments Worksheet.
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□ Yes. Subtract line 2 from line 1
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3.
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4.
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Multiply line 3 by 80% (.80)
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4.
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5.
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Enter your expected AGI
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6.
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Enter $156,400 ($78,200 if married filing separately)
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6.
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7.
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Is the amount on line 6 less than the amount on line 5?
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□ No. Stop here. Your deduction is not limited. Enter the amount from line 1 above
on line 1 of the Deductions and Adjustments Worksheet.
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□ Yes. Subtract line 6 from line 5
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7.
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8.
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Multiply line 7 by 3% (.03)
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8.
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9.
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Enter the smaller of line 4 or line 8
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9.
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10.
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Divide line 9 by 3.0
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10.
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11.
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Subtract line 10 from line 9
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11.
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12.
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Subtract line 11 from line 1. Enter the result here and on line 1 of the Deductions and
Adjustments Worksheet
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12.
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(Form W-4)—Line 1">
Adjustments to income (worksheet line 4).
Enter your estimated total adjustments to income on line 4 of the Deductions and Adjustments Worksheet.
You can take the following adjustments to income into account when figuring additional withholding allowances for
2007. These adjustments appear on
page 1 of your Form 1040 or 1040A.
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Net losses from Schedules C, D, E, and F of Form 1040 and from Part II of Form 4797, line 18b.
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Net operating loss carryovers.
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Educator expenses.
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Certain business expenses of reservists, performing artists, and fee-based government officials.
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Health savings account or medical savings account deduction.
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Certain moving expenses.
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Deduction for one-half of self-employment tax.
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Deduction for contributions to self-employed SEP, and qualified SIMPLE plans.
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Self-employed health insurance deduction.
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Penalty on early withdrawal of savings.
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Alimony paid.
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IRA deduction.
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Student loan interest deduction.
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Tuition and fees deduction.
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Jury duty pay given to your employer.
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Reforestation amortization and expenses.
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Repayment of certain supplemental unemployment benefits.
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Attorney fees and court costs for certain unlawful discrimination claims.
Tax credits (worksheet line 5).
Although you can take most tax credits into account when figuring withholding allowances, the Personal Allowances
Worksheet uses only the child and
dependent care credit (line F) and the child tax credit (line G). But you can take these credits and others into account by
adding an extra amount on
line 5 of the Deductions and Adjustments Worksheet.
If you take the child and dependent care credit into account on line 5, do not use line F. If you take the child tax
credit into account on line 5,
do not use line G.
In addition to the child and dependent care credit and child tax credit, you can take into account the following credits.
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Foreign tax credit, except any credit that applies to wages not subject to U.S. income tax withholding because they are subject
to income
tax withholding by a foreign country. See Publication 514, Foreign Tax Credit for Individuals.
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Credit for the elderly or the disabled. See Publication 524, Credit for the Elderly or the Disabled.
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Hope credit. See Publication 970, Tax Benefits for Education.
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Lifetime learning credit. See Publication 970.
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Retirement savings contributions credit. See Publication 590, Individual Retirement Arrangements (IRAs).
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Adoption credit. See the instructions for Form 8839.
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Mortgage interest credit. See Publication 530, Tax Information for First-Time Homeowners.
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Credit for prior year minimum tax if you paid alternative minimum tax in an earlier year. See the instructions for Form 8801.
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General business credit. See Form 3800.
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Earned income credit, unless you requested advance payment of the credit. See Publication 596, Earned Income Credit (EIC).
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Alternative motor vehicle credit. See Form 8910.
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Alternative fuel vehicle refueling property credit. See Form 8911.
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Credits for clean renewable energy bonds and Gulf bonds. See Form 8912.
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Qualified zone academy bond credit. See Form 8860.
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Health coverage tax credit. See Form 8885.
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Residential energy credits. See Form 5695.
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Empowerment zone and renewal community employment credit. See Form 8844.
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Credit for alcohol used as fuel. See Form 6478.
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Renewable electricity, refined coal, and Indian coal production credit. See Form 8835, Section B.
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New York Liberty Zone business employee credit. If you have a carryforward from Form 8884, see Form 8835, Section B.
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District of Columbia First-Time Homebuyer Credit. See Form 8859.
Figuring line 5 entry.
To figure the amount to add on line 5 for tax credits, multiply your estimated total credits by the appropriate number
from Table 1-1.
Example.
You are married and expect to file a joint return for 2007. Your combined estimated wages are $68,000. Your estimated tax
credits include a child
and dependent care credit of $960 and a mortgage interest credit of $1,700 (total credits = $2,660).
In Table 1-1, section A, the number corresponding to your combined estimated wages ($37,001 - $85,000) is 6.7. Multiply your
total estimated
tax credits of $2,660 by 6.7. Add the result, $17,822, to the amount you otherwise would show on line 5 of the Deductions
and Adjustments Worksheet
and enter the total on line 5. Because you choose to account for your child and dependent care credit this way, do not make
an entry on line F of the
Personal Allowances Worksheet.
Nonwage income (worksheet line 6).
Enter on line 6 your estimated total nonwage income (other than tax-exempt income). Nonwage income includes interest,
dividends, net rental income,
unemployment compensation, alimony, gambling winnings, prizes and awards, hobby income, capital gains, royalties, and partnership
income.
If line 6 is more than line 5, you may not have enough income tax withheld from your wages. See Getting the Right Amount of Tax
Withheld, on page 8.
Net deductions and adjustments (worksheet line 7).
If line 7 is less than $3,400, enter “ 0” on line 8. If line 7 is $3,400 or more, divide it by
$3,400, drop any fraction, and enter the result on line 8.
Example.
If line 7 is $5,200, $5,200 ÷ $3,400 = 1.53. Drop the fraction (.53) and enter “1” on line 8.
Two-Earners/Multiple Jobs Worksheet
Complete the Two-Earners/Multiple Jobs Worksheet on page 2 of Form W-4 if you have more than one job or are married and you
and your spouse both
work and the combined earnings from all jobs are more than $40,000 ($25,000 if married).
If you use this worksheet and your earnings are more than $130,000 ($180,000 if you are married), see Publication 919 to check
that you are having
enough tax withheld.
Table 1-1. Deductions and Adjustments Worksheet (Form W-4) —Line 5
A.Married Filing Jointly or
Qualifying Widow(er) |
|
If combined income from all sources is:
|
|
Multiply credits by:
|
|
$0 - 37,000
|
10.0
|
|
$37,001 - | |
|
