Question

Meg Green works in a store and earns $46,000 a year. Her husband, John, works full-time in manufacturing and earns $68,000 a year. In 2018, they will also have $184 in taxable interest and $1,000 of other taxable income. They expect to file a joint income tax return. Meg and John complete Worksheets 1-3, 1-4, and 1-5 of Form W-4. Line 5 of Worksheet 1-5 shows that they will owe an additional $4,459 after subtracting their withholding for the year. All of the following are true regarding their new Form W-4 except:

A. They can divide the $4,459 any way they want

B. They can enter an additional amount on either of their Forms W-4

C. They can divide the additional amount between them

D. They must apply the additional withholding amount to Meg’s taxable income

ANSWER:

D. They must apply the additional withholding amount to Meg’s taxable income

A taxpayer is more likely to need to increase his or her withholding if he or she has more than one job or if he or sheis married filing jointly and his or her spouse also works. If this is the case, the taxpayer can increase his or herwithholding for one or more of the jobs. He or she can apply the amount on Worksheet 1-7, line 5, to only one job ordivide it between the jobs any way he or she wishes. In this case, they can divide the $4,459 any way they want.They can enter an additional amount on either of their Forms W-4, or divide it between them.

Answer 1

The given answer is correct. The option D is the correct exception among the options provided regarding new Form W–4. The Form W–4 is the tax form of IRS completed by the employee in the U.S for indicating their tax situation to their employer. It helps the employer to know the accurate amount of tax to be withhold from the pay check of the employees. As per this form, the taxpayer can raise his withholding if the taxpayer is filing jointly or is earning from more than one job. Thus, the taxpayer can divide $4,459 amount in any way that they want. Also, they can enter any extra amount of their income in this form and thereby divide such amount between them.