Is Filling out your W4 Confusing? This Will Help!

Filling out your W4 form at work so that your employer knows how much money, if any, to deduct from your paycheck seems like it should be fairly simple, but it certainly is not. The biggest mistake most people make, and the most misunderstood is assuming that the filing status doesn’t include themselves as a deduction already.  NOT TRUE!  That’s already taken into consideration by the tax tables. So, for example, if you file “Single” and claim 1 exemption, you’re actually filing for 2 exemptions. The same is true for every other status. If you file your W-4 as “Married” and claim 2 exemptions for yourself and your spouse who doesn’t work, you’re actually claiming 3 exemptions.

So, here’s a very easy graphic explanation of things to consider when filling out your form. If you need to fill out a new one, just ask your employer for another. These can be changed anytime during the year.

And, of course, if you have any questions, give Bressler & Company a phone call at 559.924.1225. We’d be happy to help you figure it out.