How to fill out a W4 Form

"you do not want to be under withholding your taxes because if you do then you're gonna find out that you have a tax balance to do when you do your tax return and you also might be subject to penalties"

"on the flip side you do not want to be wildly over paying your taxes you don't want to be paying too much taxes because if you do yes you'll get that refunded back to you if you if you withhold more than you should have you'll get that refunded back to you when you do your tax return that's where your refund comes from however that's like giving an interest-free loan to the government so rather than you just over paying your taxes and waiting for you to recoup that by doing your tax return it's better for you to have that money in your hands in your pockets during the course of the year"

"this is the most updated and newest version this is completely different than the w-4 form 2019 so this is brand new"

"this form the w-4 this is what determines how much taxes to withhold from each and every one of your paychecks"

"if you are single and you do not have more than one job or you do not have more than one job then you can skip this section and you can move along and if you're married filing jointly and only one spouse is working then you can move along you can go to this section of the video please skip ahead this is in applicable to you for everyone else please stay tuned so you're here because you're still watching this portion of the video if you're married filing jointly and you and your spouse are both working or you're single and you hold more than one job at a time"

"if you do not relay this information to them you're gonna be withholding and a much lesser rate than you should you're gonna be under withholding taxes and then you're most likely going to have a tax balance to you when you do your tax return"

"if you're making a hundred grands and you do not signify to the payroll system that your spouse also makes 100 grand then they're gonna charge you taxes at a rates of someone only as a household making a hundred grand when they should be charging you taxes or what's holding taxes from you at a rates of someone or a household making 200 grands"

"so if you want the most precise answer to this section then you would go to this URL you'd fill out the questionnaire and then they would output you the answer which you would be putting right here this is all that this leads up to you foresee the extra withholding amounts so the most precise way to do this according to the IRS and according to the form the most accurate way to do this with holding for this step is to go ahead and do it on this IRS website right here"

"for each child you're gonna get a $2,000 credits that's if your income limits apply if your income will be 200,000 or 400,000 if you're filing married filing jointly then this will be applicable to you if you're above those income levels this will be in applicable to you unless you're typing in or and putting all their credits"

"if you have children or under the age 17 you get a $2,000 credit per child so if you have two children the you would enter in 4,000"

"qualifying parents so you take care of your parents they live with you you know you you can get a credit for five hundred dollars if that's a situation you didn't put that here"

"other income this is asking for the most common types of income where you have taxable income but you know taxes are withheld you know that's gonna include interest income dividend income you know a lot of times on retirement income in capital gains too so take that into consideration and if you have those types of income you want to input that here to make up for the fact that you have taxable income and you're not withholding any taxes"

"if you are single and you have a mortgage of over a hundred thousand dollars you will most likely need to fill out step four section B this deduction section because the reason why I say that is because I'm guessing that you have more than $100,000 loan and your interest rate is probably around three and a half percent four and a half percent so about approximately 4% so in that situation you're gonna have mortgage interest I'm also assuming that you're going to have property taxes and perhaps in most situations you'll have state taxes paid if you live in one of the states that pay state income taxes maybe you have some charitable contributions as well but regardless I think that you're going to be above the standard deduction amounts so in that case you're gonna be itemizing your deductions"

"if you are a married person and you do not have a mortgage greater than three hundred and fifty thousand dollars and you do not make a wild amount of charitable contributions then you will most likely ignore this section as well 4b you'll ignore this the reason why I say that is that the standard deduction for married filing jointly it's going to be just above $24,000 in that situation if your mortgage interest is not above about $14,000 then you're probably going to use the standard deduction"

"we're gonna have a two hundred dollar Amazon gift card giveaway it's gonna be completely randomized we're gonna do it on live stream if you want to participate in that for absolutely free all you need to do is subscribe give us a thumbs up and leave any comment below if you do the trifecta then you will be automatically entered into our random giveaway so that'll occur later on the year after tax season when we're less busy of course"

"this is the most updated and newest version this is completely different than the w-4 form 2019 so this is brand new"

"you do not want to be under withholding your taxes because if you do then you're gonna find out that you have a tax balance to do when you do your tax return and you also might be subject to penalties and on the flip side you do not want to be wildly over paying your taxes you don't want to be paying too much taxes because if you do yes you'll get that refunded back to you if you if you withhold more than you should have you'll get that refunded back to you when you do your tax return that's where your refund comes from however that's like giving an interest-free loan to the government so rather than you just over paying your taxes and waiting for you to recoup that by doing your tax return it's better for you to have that money in your hands in your pockets during the course of the year so you do not want to set the w-4 to under withhold you do not want to set it to over withhold you want to try to get just rights so that's what we're here to do"

"so if you want the most precise answer to this section then you would go to this URL you'd fill out the questionnaire and then they would output you the answer which you would be putting right here this is all that this leads up to you foresee the extra withholding amounts so the most precise way to do this according to the IRS and according to the form the most accurate way to do this with holding for this step is to go ahead and do it on this IRS website right here"

"I'm married and pay more than half the costs of keeping up a home for yourself and a qualifying individual a qualifying individual for example would be a child"

"so let's just say you're working 10 jobs this is extreme let's just say you're working 10 jobs you get 10 w-2s and you make $10,000 at each of those 10 jobs so you're making essentially $100,000 but I each one of those jobs they each think that you're making only $10,000 for the year right so in that case they would be withholding at a very low tax rate because they think you're only making $10,000 for the year but in reality you should be withholding at a higher tax rate because in reality you're making $100,000 so a person making $100,000 should be withholding at a higher tax rates than a person making 10,000 so in that case you need to tell the payroll systems that information that you are working more than one job at a time so if you do not relay this information to them you're gonna be withholding and a much lesser rate than you should you're gonna be under withholding taxes and then you're most likely going to have a tax balance to you when you do your tax return"

"and same thing goes with the married filing jointly and both spouses are working it's the same example so if you're making a hundred grands and you do not signify to the payroll system that your spouse also makes 100 grand then they're gonna charge you taxes at a rates of someone only as a household making a hundred grand when they should be charging you taxes or what's holding taxes from you at a rates of someone or a household making 200 grands so you need to signify this to the payroll system and this is the section to do so"

"for each child you're gonna get a $2,000 credits that's if your income limits apply if your income will be 200,000 or 400,000 if you're filing married filing jointly then this will be applicable to you if you're above those income levels this will be in applicable to you unless you're typing in or and putting all their credits so again the reason why they have these labeled here is because these are the most common ones so if you have qualifying children and these income limits apply to you you fall under or you qualify then this will be applicable to you so if you have children or under the age 17 you get a $2,000 credit per child so if you have two children the you would enter in 4,000"

"dependents you know a popular one you know more common one would be qualifying parents so you take care of your parents they live with you you know you you can get a credit for five hundred dollars if that's a situation you didn't put that here"

"here is step for a other income this is asking for the most common types of income where you have taxable income but you know taxes are withheld you know that's gonna include interest income dividend income you know a lot of times on retirement income in capital games too so take that into consideration and if you have those types of income you want to input that here to make up for the fact that you have taxable income and you're not withholding any taxes"

"similarly if you're going to have deductions greater than the standard deduction so in other words if you're going to be taking and claiming the itemized deductions this is the spot to make that adjustments so in the situation where you're going to be using the standard deduction you can just ignore this you're done you don't need to input anything at 4 B because the standard deduction is just the deduction that everyone can to claim"

"so if you're single and you have a mortgage of over a hundred thousand dollars you will most likely need to fill out step four section B this deduction section because the reason why I say that is because I'm guessing that you have more than $100,000 loan and your interest rate is probably around three and a half percent four and a half percent so about approximately 4% so in that situation you're gonna have mortgage interest I'm also assuming that you're going to have property taxes and perhaps in most situations you'll have state taxes paid if you live in one of the states that pay state income taxes maybe you have some charitable contributions as well but regardless I think that you're going to be above the standard deduction amounts so in that case you're gonna be itemizing your deductions so that's why I say if you have a mortgage if you have a home and a mortgage of above a hundred thousand you're most likely going to be itemizing as a single person"

"so if you are a married person and you do not have a mortgage greater than three hundred and fifty thousand dollars and you do not make a wild amount of charitable contributions then you will most likely ignore this section as well 4b you'll ignore this the reason why I say that is that the standard deduction for married filing jointly it's going to be just above $24,000 in that situation if your mortgage interest is not above about $14,000 then you're probably going to use the standard deduction so I'm just assuming assumptions here that if you have a $350,000 mortgage you know and the interest rate that you receive is about four percent then the mortgage interest will be about fourteen thousand you'll have property taxes state taxes paid but that will be capped at ten thousand so that'll get you to the equivalent of the standard deduction amount of about twenty four thousand so if you do not have mortgage above three hundred fifty thousands and you are not making a lot of charitable contributions then you're most likely just gonna leave this blank but if you have a mortgage above three hundred fifty thousands or you have a lot of tradable contributions or a combination or you have a lot of medical expenses that qualify then yeah you're going to be working you're going to want to use the deductions worksheet on page three for more details"

"we're gonna have a two hundred dollar Amazon gift card giveaway it's gonna be completely randomized we're gonna do it on live stream if you want to participate in that for absolutely free all you need to do is subscribe give us a thumbs up and leave any comment below if you do the trifecta then you will be automatically entered into our random giveaway so that'll occur later on the year after tax season when we're less busy of course"