Q What is a Withholding Exemption Certificate?
A “The Form W-4 is the Employee?s Withholding Allowance Certificate,” said Marion Thompson, a certified public accountant and member of the Maryland Society of Accountants. The form is completed by the employee and given to the employer.
Thompson said the form lists the number of withholding allowances and any additional withholding amounts the employee is claiming.
“The employer uses this form to compute the requested amount of withholding,” Thompson said.
In general, withholding allowances can be claimed for each exemption claimable on the return.
However, there are numerous adjustments to this figure for other income, itemized deductions and families with two income earners, so taxpayers should look for any exemptions they fulfill.
