How to Fill Out W4? Step by Step Guide to Fill W4 Form

What is W4 Form?

Form W4 is issued by the IRS to the taxpayers, to mention their allowances details with their respective employers for the exact tax withholding from their paychecks for Federal and State Revenue Departments.

We crescent tax filing would take this as a pleasure opportunity, and feel more responsible to educate and help all the taxpayers in clarifying all the doubts related to filling out their Form W4 to be submitted with their employers, so that when they file 2021 tax returns they should be happy to get more refunds than any painful balance due tax payments to the tax authorities.

Withheld tax amount by the employers from their respective employees paychecks will have to be deposited with the relevant tax authorities each payroll month, in turn after the end of the tax year the total deducted tax will have to be mention on the form W2 and should be issued to the employees, in turn, employees can file their tax returns and get tax refunds or pay balance tax due to the tax authorities.

How W4 Withholding’s Work?

Form W4 of IRS will help you to mention your deductions details like, whether you are Married, Single, HOH, QWDC refundable and non-refundable child tax credit, credit for the other dependents, and other credits. The more lines you check the lesser will be your tax deduction for federal and states, so it is always advisable to check the lines based on your eligibility.

The tax reform of the tax year 2018 made many changes in personal and business taxes. The tax reform has removed a personal exemption, increased standard deductions, reduced tax brackets and called off the unreimbursed employee business expenses up to 2025.

The taxpayers were not aware of the above tax law changes and mentioned many allowances on their From W4 submitted with their respected employers, the excess allowances on the W4 has forced the employers to deduct fewer taxes for the Federal and States in turn when the employees got their W2’s the tax withholding for the federal and state was way less, for this matter the employees had to pay balance due tax with the penalties on their tax returns.

Does Paying Estimates Taxes to Avoid the Balance Due?

If you got any non-wage income like interest or dividends without any tax deduction you have to pay estimated taxes on form 1040ES, Nonpayment of non-wage income tax will make you pay balance tax due with your 2021 tax returns.

What to include in your form W4?

  • Your name and address
  • Your social security numbers
  • Your marital status
  • Total allowances
  • Additional amount to be withheld
  • Exempted for the taxes
  • Your Signature

When to Submit Form W4? 

As you need to ensure your tax withholding for federal and state is appropriate, you need to submit new W4 with your employers for the below reasons.

  • Beginning of the tax year
  • Filing Status Change
  • Mentioning your dependents details
  • Started working in a new state
  • When you started working for a new employer or changed job
  • When your visa has changed/converted

Can W4 Help You In Planning Your Tax Year 2021?

Yes! Submission of Form W4 give you an idea and also help you in planning your tax year 2021. By opting some of the below plans and provisions below, the taxpayer can get the maximum tax deductions or credits.

Education: 529 Plans Contributions for married and individuals, Accelerate 5 years of gifting for married and individual.

Lifetime Learning Credits: for single or joint.

Coverdell education savings account.

Savings in tax-free bonds.

American opportunity credit.

IRA and Roth IRA contributions

SEP contribution

Qualified Plan Contributions

Can You Avoid The Painful Balance Due to Tax Payments on Your 2021 Tax Returns?

Obviously! It’s not too late to avoid balance due tax payments on your 2021 tax returns. We Crescent Tax Filing will email you the W4 Questionnaire Form to know your details, based on the information you provide us on the Questionnaire form we will accurately fill out your Form W4 and email you the same, you just need to submit it with your employer for accurate tax withholding for federal and state revenue departments.

Can You Get Expected Tax Refunds On Your 2021 Tax Returns?

Internal Revenue Services has urged the taxpayers to check up their mid-year tax withholding by considering several factors which could increase tax refunds for the tax year 2021.

Since we have been filing thousands of tax returns every year we have noticed numerous taxpayers had to pay thousands of dollars towards the balance due on their tax returns, instead of any refunds. The prime reasons are the taxpayers have mentioned ineligible allowances on their form W4 without considering their eligibilities.

Now! We request you to call us or email us to send you our tax information form for the tax year 2021 for your details, soon after receiving your details, we can fill out your form W4 which needs to be submitted with your employers for appropriate tax withholding for the federal and state. So, when you get your form W2, you can see adequate tax withholding for federal and state, soon after filing your tax returns you can get desired refunds from federal and state.

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