Form W-9 is an impost employer’s document, so that the amount of tax withdrawal within the income received was correctly determined. Tax system in the United States of America is actually flexible, and it is the working citizen or resident who can determine the amount of deductible tax from his wages. Moreover, every year the state reimburses most of the contributions.
When applying any job in the US, the employer will give a printable W-9 form. The employee should not be scared while accidentally damaging it or making mistakes while filling process. Free W 9 form is publicly available, and is updated every year.
Personal Allowances Worksheet: within this fillable block the employee will help the hirer determine the amount of deductible contributions from salary:
- A – Put “1” being independent from anyone;
- B – Put “1” being not married, and having single job; having the mate, but the spouse doesn’t work; the income or spouse’s salary (or the total amount of the family) is less than $1500;
- C – Enter “1” for the spouse. At the same time worker can choose “0” if having the mate and both are working. Entering “0” does not provide a contribution credit, but is a guarantee of a larger refund after the reporting period;
- D – Put the number of dependents (for example, children, if any). Each child is single point. Filled only if the worker plan to claim a partial refund of paid taxes;
- E – Enter “1” if filing a contribution return as the head of the family (note: in this case, the worker must not be married, but having dependents, and spending more than 50% of the family’s expenses);
- F – Put “1” if having at least $ 2,000 in dependents’ spending format, and planning to take out a loan (explanation: let’s say that spending on children is so high that wages do not cover expenses.) It is assumed planning to take credit, let’s collect the children in school. If so, the employee must mark “1” point, this means an increase in the percentage discount;
- G – Request a credit. If the worker’s, or the total income of the family per year is less than $70 and $100 thousand respectively, then for each child one should put “2” points. But in this issue it’s recommend consulting with the employer;
- H – Calculating the number of whets from “A” to “G”, and write down. In order not to remain in debt with the state, the optimal number of points should be up to seven.
Employee’s Withholding Allowance Certificate: in this section one should specify his or her personal data for the employer.
- The name and initial letter of patronymic; surname;
- Social Security Number (SSN); home address;
- Choosing marital status: being not married, married, or married, but do not live with the family; city, state and index (Georgia, Atlanta, etc);
- Warning that if the name differs from the one indicated on the SSN-card, one must order its re-release, according to the changed data;
- Indicating the number of whets (item H). Other points are skipped;
- The preferable work position (example: vendor).
The further part of the W-9 form is basically serves for further online recalculation of the taxation in the event of a disputable situation. After successful completion, one should take out the W-9 paper to the employer. Within the salary period, the employee will receive a check, already with deducted taxes.