Personal Allowance Worksheet A thru D: W-4 Tax Form

Video Transcript

"Now we are going to work through the personal allowance worksheet. On this the situation for James is he is married but his wife is not working yet. They have 2 children and they think they would be able to claim the child tax credit. So James knows this when he goes in to start working on the first item C. So in line A enter 1 for yourself if no one else could claim you as a dependent and no one else could claim you so we enter one in line A. Then enter 1 if you are single and have only one job or you are married have only one job and your spouse does not work or your wages from a second job with your spouses wage or the total of both are a 1000 dollars less. In James case his wife is looking for a job so he does not want to put one here so he puts 0 for B. We would look at C enter 1 for your spouse but you may choose to enter 0 if you are married or have either a working spouse or more then one job. Entering 0 may help you avoid having to little tax withheld. Well James' wife is not working yet but he expects she would be in a year so to be in the safe side he enter 0 for C. Goes to enter the number of dependents other then your spouse or yourself you would claim on your tax return. In their case, they have 2 children that they are going to claim so they enter 2."