Everything You Need to Know About the W4S Form

Completing the W4S form correctly is important to ensure you receive accurate tax withholdings with each paycheck. Get started today with this comprehensive guide!

Filing out a W-4S form correctly is essential to making sure you receive accurate with holdings from your paychecks. This guide will walk you through the details of correctly filling out this form so you can ensure that you get the amount of taxes owed deducted from each paycheck.

W4S Form
Tax Forms

What is the W4S Form and Why is it Important?

The W4S form is a vital document that every employee needs to complete in order to make sure their taxes are withheld correctly. This form determines how much federal income tax will be withheld from each paycheck. Completing this form correctly is an important step to ensuring that you pay the correct amount of taxes and don’t end up with a surprise bill come tax time.

How Do I Complete the W-4S Form?

Completing the W4S form properly is easy to do but requires some thoughtful consideration. First, determine the number of allowances you will claim and if you qualify for any special tax credits or deductions. Then, specify how many additional dollars you’d like withheld from each paycheck in the “Additional Amount” box. Finally, review your entries carefully before signing and submitting the completed form to your employer.

Common Mistakes to Avoid When Filling Out this Form

One of the most common mistakes that searchers make when filling out the W4S form is not following the instructions closely. To correctly fill out a W4S form, you must read each item carefully and provide accurate information. Additionally, it is important to double check your entries, as any errors could lead to incorrect tax withholdings or fees, which can have serious consequences down the line.

What If I Claim More than Ten Allowances on My W4S?

If you choose to claim more than ten allowances on your W4S form, you may receive a larger tax refund when filing your income taxes. However, this also means that you will have less withheld from each paycheck. This could result in an unexpectedly large tax bill at the end of the year if you have not estimated correctly. For this reason, it is important to understand which allowances are available and only claim those for which you are eligible.

Qualifying for Additional Withholding Credit When Completing a W4S

Certain taxpayers may be eligible for Additional Withholding Credit when completing a W4S form. To qualify, your income must be higher than your standard deduction plus the number of exemptions you are claiming on the form. If this is the case for you, you can include the additional withholding amount on line 6 of the W4S form. This will result in more money being withheld from each paycheck, allowing you to get a larger tax refund later on.

Supreme Court Ruling Will Affect Taxes

How will the healthcare ruling by the Supreme Court affect taxes?

The individual mandate is not the only thing about the Affordable Care Act. There are tax changes to consider. Because of the three day hearing about the ACA, here at TaxVox, I believe it is time to ponder some of the revenue provisions.

Provisions in the law allow for tax cuts as well as increases. Unless the whole thing is thrown out, these tax changes would likely remain.

If it can be considered a tax at all, the only one would be the mandate penalty for not purchasing insurance. The Supreme Court will have to decide if this is a penalty or a tax.

Included in the ACA are some very important tax cuts; credits for helping small businesses that purchase insurance for their workers. You may not realize that they are there, as over $1 million has been paid by the NFIB to challenge the ACA.

The NFIB will more than likely think that those subsidies should be thrown out if the Supreme Court rejects any of the key parts of the reform.

There are some tax increases in the new law, including an excise tax for high value health plans that are sponsored by the employer. That would begin in 2018 and make it harder to take itemized deductions on their medical costs.

There are a couple of other tax increases of note. The first tax increase of the bill is a .9% increase for higher income workers in the medicare wage tax. This is for supporting the health system for seniors. The second increase, sometimes referred to as a Medicare surtax, is a 3.8% high income tax on households that enjoy income from investments and non-wage sources.

These new taxes, according to a Tax Policy Center study, would increase taxes on those households earning between $500,000 – $1,000,000 by about $4,600 and those earning $1 million+ by $41,000. Those making $250,000+ ($125,000 single) will also be affected.

It would not be wise, then, to forget these tax changes. We may not have seen the end of the tax code modifications.

Turbo Tax Presents Overlooked Tax Deductions

TurboTax recently listed some common overlooked tax deductions that tax payers should consider when filing their taxes. Some of the often forgotten tax deductions included property taxes, the Child Care Credit, the Earned Income Tax Credit (EITC), and refinancing points. As long as you itemize your tax deductions, you should consider claiming the deductions that apply to your situation.

Property Taxes

The standard deduction can be enhanced if you pay property taxes during the year and do not itemize your deductions on Schedule A. Add an additional $500 to the standard deduction for both 2008 taxes and 2009 taxes.

Child Read more at 2010 Tax.

TurboTax recently listed some common overlooked tax deductions that tax payers should consider when filing their taxes. Some of the often forgotten tax deductions included property taxes, the Child Care Credit, the Earned Income Tax Credit (EITC), and refinancing points. As long as you itemize your tax deductions, you should consider claiming the deductions that apply to your situation.

Property Taxes

The standard deduction can be enhanced if you pay property taxes during the year and do not itemize your deductions on Schedule A. Add an additional $500 to the standard deduction for both 2008 taxes and 2009 taxes.

Child Care Credit

Make sure to claim child tax credits up to $6,000 when you work have your children in child care. Often an employer will provide a plan that will pay for child care pre-tax but not up to the $6,000 limit. If this is the case, take the extra amount up to the limit on your tax return.

Earned Income Tax Credit

Lower to middle income tax payers can claim the Earned Income Tax Credit and receive a tax refund greater than the taxes they paid during the tax year. Many miss out on the tax credit as they do not realize it is available to them. If your income has changed during the past year, make sure to study the EITC to see if you qualify. The tax credit varies depending on your income, filing status and family size. If you find that you are eligible, amend your past returns to claim this very generous tax credit.

Refinancing Points

If you purchased a home during the past tax year and paid mortgage origination points, you can claim all the points when you file your taxes and obtain a very good tax deduction. If you refinanced your home and paid points, you can claim the points you paid as a tax deduction spread out over the life of the loan.

Income That is Not Taxed!

Income That is Not Taxed!

While preparing your taxes this year you might notice that some forms of income are not taxed at all while other kinds of income are only partially taxed. You can save thousands of dollars in taxes each year by having non-taxable income compared to taxable income. The IRS has provided a list of incomes that are not taxed.

Included in the list of non-taxable income is adoption expense reimbursements, cash rebates for manufacturers, child support that you received, welfare, gifts, inheritance, compensatory damage awards, workers compensation, and meals and lodging reimbursed by your employer.

Examples … Read more at 2010 Tax.

Income That is Not Taxed!

While preparing your taxes this year you might notice that some forms of income are not taxed at all while other kinds of income are only partially taxed. You can save thousands of dollars in taxes each year by having non-taxable income compared to taxable income. The IRS has provided a list of incomes that are not taxed.

Included in the list of non-taxable income is adoption expense reimbursements, cash rebates for manufacturers, child support that you received, welfare, gifts, inheritance, compensatory damage awards, workers compensation, and meals and lodging reimbursed by your employer.

Examples of income that is partially taxed or taxed based on the circumstances are life insurance, college scholarships, college grants, and non-cash income. Non-cash items are taxable to the fair market value of the items exchanged in a barter situation. Sometimes income tax is avoided through the exchange of items instead of paying for services, but this is not a legal form of non-taxable income.

For more examples of income that is not taxable, take a look at IRS Publication 525 on the IRS website.

Try TurboTax 2009 or Tax Act 2009 Free Today!

Income Tax Returns: Top 7 Reasons For Filing Them On Time

Income Tax Returns: Top 7 Reasons For Filing Them On Time

The top 7 reasons why you should not be late to file your income tax returns are discussed here.

(i) To avoid penalties for late filing

Delinquent taxes attract substantial penalties. These are in addition to the interest due for you.

(ii) To receive a better service from the accountant

The accountant will be able to begin your tax preparations sooner, if you can get all your paper work done earlier. Moreover, you can find lot of opportunities to implement strategies for saving on your taxes. But if … Read more at 2010 Tax.

Income Tax Returns: Top 7 Reasons For Filing Them On Time

The top 7 reasons why you should not be late to file your income tax returns are discussed here.

(i) To avoid penalties for late filing

Delinquent taxes attract substantial penalties. These are in addition to the interest due for you.

(ii) To receive a better service from the accountant

The accountant will be able to begin your tax preparations sooner, if you can get all your paper work done earlier. Moreover, you can find lot of opportunities to implement strategies for saving on your taxes. But if you are already late, then your accountant won’t be much help to you regarding this. Suppose there are some profits in your corporation subject to huge penalties; in such cases for late filing, the accountant might be hesitant retaining those profits.

(iii) To avoid criminal charges

In cases of not filing tax returns for many years, there may be criminal charges against you including tax evasion.

(iv) To prevent bankruptcy

In general, people who are unable to file tax returns regularly have poor business management. They are not up to date with their own accounting and bookkeeping; they just think that they know their financial position and how they’re performing. It’s the beginning of a financial calamity.

(v) To have a better relation with the tax authorities

The people who continuously file late come into the notice of the department of taxation. Disobedience might lead to audits, forcefully collecting taxes, or other legal activities. Moreover, in case you have a clean history of compliance and cooperation with the income tax department, then at times of need the tax department won’t hesitate to give extraordinary consideration to your matter and provide leniency.

(vi) To obtain finance

If you are unable to show your proper income portfolio, then it becomes difficult for you to obtain financing. The assessment notices provided by the tax department give more assurance to the banks regarding your income claims. Moreover, if you are not filing your present income tax returns, then how is it possible to know about your hidden tax liabilities? What is your own record-keeping state? Without good financial information, how are you running your business? In case you are asking for a loan, the bank might hesitate to offer it under these circumstances.

(vii) To lighten stress and worry

Most people feel guilty about filing the tax returns late. They are actually afraid of getting contacted by the tax authorities, auditing, seizing of properties, criminal prosecution, interests and penalties, etc. Whatever be the actual situation, these worries might worsen the matter. So file your income tax returns in a timely manner and save yourself some unwanted stress and worry.