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one of our employees keeps changing her w-4 form from 1 to 9 de

Sent to Tax Experts September 15 01:37 PM

Does an employee of ours have the right to claim 9 dependents if we know she only has herself as a deduction? Can we be held responsible for the information she provides that is incorrect?

 

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chanhassen, Minnesota

Customer (name blocked for privacy)
Answer
September 15 2:56 PM (1 hour and 18 minutes and 34 seconds later)
         
ACCEPTEDCheck Mark

The number of allowances on W4 is set by an employee - please pay attention it calls number of allowances and not number of dependents.

The employee may have other reasons for increasing this value. For instance, itemize deductions, education credits etc. - http://www.irs.gov/pub/irs-pdf/fw4.pdf

See more details in IRS publication 505 - http://www.irs.gov/pub/irs-pdf/p505.pdf

See also IRS publication 15 page 14 - http://www.irs.gov/pub/irs-pdf/p15.pdf

In the past you have to submit to IRS all W4s. Now you would submit it only per IRS request.

You should calculate the withholding based on the signed W4 form. If you feel that W4 filled incorrectly - give a written letter to employee and have it signed for acknowledging before accepting W4. You still have to follow W4. The employee will be responsible for penalties if withholding would turned to be incorrect.




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