Publication 505 - Tax Withholding And Estimated Tax (Page 5 of 49) in pdf

withholding allowances for 2003, you must give

year. You must ask in writing that your employer

fying Widow(er) With Dependent Child

your employer a new Form W – 4 by December

use this method.

under Filing Status in Publication 501, Ex-

1, 2002. If an event occurs in December 2002,

To be eligible, you must have been paid for

emptions, Standard Deduction, and Filing

submit a new Form W – 4 within 10 days. Events

the same kind of payroll period (weekly, bi-

Information.

that will decrease the number of your al-

weekly, etc.) since the beginning of the year.

Some married people find that they do not

lowances include the following.

have enough tax withheld at the married rate.

Checking your withholding. After you have

•

You claimed allowances for 2002 based

This can happen, for example, when both

given your employer a Form W – 4, you can

on child care expenses, moving expenses,

spouses work. To avoid this, you can claim mar-

check to see whether the amount of tax withheld

or large medical expenses, but you will not

ried, but withhold at higher single rate (even

from your pay is too little or too much. See

have these expenses in 2003.

if you qualify for the married rate). Also, you can

Getting the Right Amount of Tax Withheld, later.

•

fill out the Two-Earner/Two-Job Worksheet, ex-

If too much or too little tax is being withheld, you

You have been claiming an allowance for

plained later.

should give your employer a new Form W – 4 to

your spouse, but he or she died in 2002.

change your withholding.

Withholding Allowances

Note. Because you can still file a joint return

Note. You cannot give your employer either

(Line 5 of Form W–4)

for 2002, your spouse’s death will not affect the

a payment to cover withholding for past pay

number of your withholding allowances until

periods or a payment for estimated tax.

The more allowances you claim on Form W – 4,

2003. You will also have to change from married

the less income tax your employer will withhold.

Completing Form W–4

to single status for 2003, unless you can file as a

You will have the most tax withheld if you claim

qualifying widow or widower because you have

and Worksheets

“0” allowances. The number of allowances you

a dependent child, or you remarry.

can claim depends on the following factors.

You must file a new Form W – 4 showing

The discussion that follows explains in detail

•

single status by December 1 of the last year you

How many exemptions you can take on

how to fill out Form W – 4. It has more detailed

are eligible to file as qualifying widow or wid-

your tax return.

information about some topics than the Form

ower.

•

W – 4 instructions.

Whether you have income from more than

In reading this discussion, you may find it

one job.

Part-year method. If you work only part of the

helpful to refer to the filled-in Form W – 4 in

•

year and your employer agrees to use the

What deductions, adjustments to income,

Example 1.3, later in this chapter.

part-year withholding method, less tax will be

and credits you expect to have for the

withheld from each wage payment than would

year.

be withheld if you worked all year. To be eligible

Marital Status

•

Whether you will file as head of house-

for the part-year method, you must meet both

(Line 3 of Form W–4)

hold.

the following requirements.

There is a lower withholding rate for people who

If you are married, it also depends on whether

1) You must use the calendar year (the 12

can claim married status on line 3 of Form W-4.

your spouse also works and claims any al-

months from January 1 through December

Everyone else must have tax withheld at the

lowances on his or her own Form W – 4.

31) as your tax year. You cannot use a

higher single rate. (Also, see Getting the Right

fiscal year.

Amount of Tax Withheld, later.)

Form W – 4 worksheets. Form W – 4 has

2) You must not expect to be employed

You must claim single status if either of the

worksheets to help you figure how many with-

for more than 245 days during the year.

following applies.

holding allowances you can claim. The work-

To figure this limit, count all calendar days

sheets are for your own records. Do not give

1) You are single. If you are divorced, or

that you are employed (including week-

them to your employer.

separated from your spouse under a court

ends, vacations, and sick days) beginning

Complete only one set of Form W – 4 work-

decree of separate maintenance, you are

the first day you are on the job for pay and

sheets, no matter how many jobs you have. If

considered single.

ending your last day of work. If you are

you are married and will file a joint return, com-

temporarily laid off for 30 days or less,

plete only one set of worksheets for you and

2) You are married, but either you or your

count those days too. If you are laid off for

your spouse, even if you both earn wages and

spouse is neither a citizen nor a resi-

more than 30 days, do not count those

must each give a Form W – 4 to your employers.

dent of the United States. However, if

days. You will not meet this requirement if

Complete separate sets of worksheets only if

one of you is a citizen or a resident, you

you begin working before May 1 and ex-

you and your spouse will file separate returns.

can choose to have the other treated as a

pect to work for the rest of the year.

resident. You can then file a joint return

If you are not exempt from withholding (see

and claim married status on your Form

Exemption From Withholding, later), complete

How to apply for the part-year method.

W – 4. See Nonresident Spouse Treated as

the Personal Allowances Worksheet on page 1

You must ask in writing that your employer use

a Resident in chapter 1 of Publication 519,

of the form. You should also use the worksheets

this method. The request must state all three of

U.S. Tax Guide for Aliens, for more infor-

on page 2 of the form to adjust the number of

the following.

mation.

your withholding allowances for itemized deduc-

tions and adjustments to income, and for

1) The date of your last day of work for any

You can claim married status if either of the

two-earner or two-job situations. If you want to

prior employer during the current calendar

following applies.

adjust the number of your withholding al-

year.

lowances for certain tax credits, use the Deduc-

1) You are married and neither you nor

2) That you do not expect to be employed

tions and Adjustments Worksheet on page 2 of

your spouse is a nonresident alien. You

more than 245 days during the current cal-

Form W – 4, even if you do not have any deduc-

are considered married for the whole year

endar year.

tions or adjustments.

even if your spouse died during the year.

Complete all worksheets that apply to your

3) That you use the calendar year as your tax

2) You expect to be able to file your return

situation. The worksheets will help you figure the

year.

as a qualifying widow or widower. You

maximum number of withholding allowances

usually can use this filing status if your

you are entitled to claim so that the amount of

Cumulative wage method. If you change the

spouse died within the previous 2 years

income tax withheld from your wages will match,

number of your withholding allowances during

and you provide a home for your depen-

as closely as possible, the amount of income tax

the year, too much or too little tax may have

dent child. However, you must file a new

you will owe at the end of the year.

been withheld for the period before you made

Form W – 4 showing your filing status as

the change. You may be able to compensate for

single by December 1 of the last year you

Two jobs. If you have income from two jobs

this if your employer agrees to use the cumula-

are eligible to file as a qualifying widow or

at the same time, complete only one set of Form

tive wage withholding method for the rest of the

widower. For more information, see Quali-

W – 4 worksheets. Then split your allowances

Chapter 1 Tax Withholding for 2002

Page 5

Publication 505 - Tax Withholding And Estimated Tax Page 5

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