w-4 tax form & withholding

tackling income taxes

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how's it going?

what's in this lesson?

When you think of taxes, what’s the first thing that comes to mind? For us, it’s all those freakin’ forms we need to fill out. In this lesson, we’ll cover the W-4 tax form, a key one for salaried employees, and what it means to “withhold” taxes.

w-4 tax form & withholding

tackling income taxes

Share

Share on facebook
Share on twitter
Share on linkedin
Share on email

what's in this lesson?

When you think of taxes, what’s the first thing that comes to mind? For us, it’s all those freakin’ forms we need to fill out. In this lesson, we’ll cover the W-4 tax form, a key one for salaried employees, and what it means to “withhold” taxes.

w-4 tax form & withholding

tackling income taxes

When you think of taxes, what’s the first thing that comes to mind? For us, it’s all those freakin’ forms we need to fill out. In this lesson, we’ll cover the W-4 tax form, a key one for salaried employees, and what it means to “withhold” taxes.

overview

What is a W-4 tax form?

A W-4 is a tax form that you fill out when starting a full-time salaried job to indicate your tax situation and preferences to your employer.

 

What info do you provide in a W-4?

You give your employer your personal information – name, address, social security (make sure it’s all real, no catfishing the IRS) AND how much you want withheld from your paycheck.

 

What does withholding mean?

Withholding is the amount that doesn’t get included in your paycheck and is instead paid directly to the IRS in the form of taxes.

 

More vs. less withholding

Deciding withholding is basically a “now or later” conversation you need to have with yourself. When more money is withheld, that means the employer pays taxes directly to the government for you. Less withholding now means you get more money in your pocket now, but you’ll have to pay more later.

 

Get to know the W-2

We’ll talk more about this one later on, but the information and results of what you input on your W-4 are ultimately reflected on your W-2 tax form. Your employer will send you your W-2 tax form, which you’ll use to file your tax returns. The amount of taxes withheld will be shown on that document so the IRS knows what’s up.

Your W-4 is key for a salaried job, but what if you’re a contract worker or freelancer? Check out the next lesson!

 

Source(s): IRS

How's it going?

resources

overview

What is a W-4 tax form?

A W-4 is a tax form that you fill out when starting a full-time salaried job to indicate your tax situation and preferences to your employer.

 

What info do you provide in a W-4?

You give your employer your personal information – name, address, social security (make sure it’s all real, no catfishing the IRS) AND how much you want withheld from your paycheck.

 

What does withholding mean?

Withholding is the amount that doesn’t get included in your paycheck and is instead paid directly to the IRS in the form of taxes.

 

More vs. less withholding

Deciding withholding is basically a “now or later” conversation you need to have with yourself. When more money is withheld, that means the employer pays taxes directly to the government for you. Less withholding now means you get more money in your pocket now, but you’ll have to pay more later.

 

Get to know the W-2

We’ll talk more about this one later on, but the information and results of what you input on your W-4 are ultimately reflected on your W-2 tax form. Your employer will send you your W-2 tax form, which you’ll use to file your tax returns. The amount of taxes withheld will be shown on that document so the IRS knows what’s up.

Your W-4 is key for a salaried job, but what if you’re a contract worker or freelancer? Check out the next lesson!

 

Source(s): IRS

Lessons in this course:

resources

onomy-resources

lessons

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