To know more about Form W-4, one should completely understand the reason behind this form and how can they completely fill up this form?
Here is everything you need to know about the form W-4 and why if not done properly this can send the taxpayers in trouble at the time of tax filing.
Firstly What Is Form W-4 And Why Do You Use It For?
The Form W-4 is well known for as the withholding certificate and it is mostly used by the employers to ensure the limit of taxes that they can withhold from the paycheck as the cash directly going to the Internal Revenue Service, by using the SSN of the workers.
The workers will be due to pay taxes throughout the year. This is why, being unsuccessful to save enough from their salary for the taxes, they will have to pay penalties and interests over the taxes.
However, people who withhold more taxes than they need will get refunds as they fill their annual report of income tax. So the Form W-4 is very important for the people. The employees will have to send their address, SSNs, names and their status of tax filing. They will also be questioned about the marital status of the taxpayer.
However, you should not confuse with Form W-2 which is a form that tells IRS about the earning of the taxpayers in last year. Businesses are bound to fill-up these forms while workers need to fill-up the Form W-4.
So these are everything you need to know about the Form W-4 and why you need to fill-up this form to save your money. Get these forms and fill them up properly for the taxes.