Video instructions and help with filling out and completing When Form 2220 Allowance

Instructions and Help about When Form 2220 Allowance

Hey guys it's Anthony Fontana here I'm an IRS enrolled agent with ei tax resolutions and today I'm addressing the question of how many allowances do I claim on the IRS Form w-4 so what is the IRS Form w-4 it's a form your employer is required to give to you when you start a new job and it tells your employer how much taxes to withhold out of your paycheck so obviously this is a very important form to sell it accurately as you want to make sure that you're paying enough taxes throughout the year so at the end of the year you don't owe a whole bunch money but then on the other hand you don't want to be paying too much taxes so you don't have enough money in your paychecks to pay your bills so there's a lot of information that goes into filling out an accurate form w-4 what sources of income do you have how much income do you have what is your filing status how many dependents you Clint there's a lot that goes into it however the most important thing I want you to get out of this video is the concept behind the number of allowances you are claiming on the form w-4 line 5 ok so the higher number that you throw down on line 5 tells your employer to withhold less taxes now vice-versa the lower number that you claim on line 5 of the w-4 0 being the lowest tells your employer to withhold more taxes now let's take a look at the form I'll go through that with you right now ok so this is the first page of the IRS Form w-4 and here's what the second page looks like ok as you can tell there's a lot going on here however what you have to note is the only thing you're required to fill out and return back to your employer is this bottom half of the first page below the highlighted section here and what this includes is basic information about yourself your name your address social security number filing status and of course the infamous line 5 which is the amount allowances that you will be claiming so you're saying Anthony what's going on why is there so much else going on on this w-4 what is it saying right everything else on the w-4 is helping you determine the accurate amount of allowances you should be claiming for your particular situation so if you look here in this highlighted section this is the personal allowances worksheet that everyone should be going through no matter what your situation is you should be going through the personal allowances worksheet however on the second page here these two highlighted sections are two separate worksheets the top one is you should fill out if you itemize your deductions and the bottom one you need to fill out if either you have multiple jobs or you're married filing joint and there's two earners right there the you and your spouse both make a wage you got to fill out that section but however this is all going to now tie back and add up here on line five to the total amount allowances that you're claiming and again just to reiterate here the higher number that you're going to claim as allowances here on line five tells your employer the less amount of taxes to take from your paycheck and vice versa the lower amount allowances you claim on line five zero being the lowest tells your employer to take out the most amount of taxes okay now that we have a better understanding of what the w-4 form looks like a little how it works and what you got to fill out if you're still confused on the accurate amount of allowances that you need be claiming maybe you don't understand the terminology within the w-4 maybe your situation is just a little too complex feel free to give us a call shoot us an email we'll run through your particular situation ND and tell you the correct amount of allowances that you should be claiming if you found this video helpful do us a big favor share it with your friends shoot us a like subscribe to our Channel you know we really appreciate you guys thank you so much