Countersignature Form W-4 Made Easy

Ldss 4826 2018-2019 Form

today I'm gonna talk about the w-4 for 2019 the paper version I'm finally gonna do the paper version before I do the online version and stay to the end because if you're doing the paper version you're definitely missing out on reducing your overall tax liability and really controlling your taxes if this is your first time at our channel or you haven't subscribed click on the subscribe button at the bottom my name is Travis sickles certified financial planner with sickle under financial advisors after all this time I finally figured out how to get this to work on my iPad so we're gonna go through today and let's begin so this is the w-4 for 2019 now if you don't have it I'm gonna show you where the link is right here and you can just go to it it's IRS gov for slash Form w-4 and if you go there you can get yourself a copy of the w-4 and follow along now the directions here at the top give you a brief overview of how to fill out the w-4 but I do want to point out now at the very top of the first page are the directions on how to start and fill out the w-4 but I do want to point out that they make a reference to the online version the online calculator numerous times and there you have it the w-4 app it's right there it's right here and it is also right here as well probably somewhere else as well probably in a few other places I can find it maybe not but the w-4 the app is right there I highly recommend to do the app because it makes it so much simpler and it's why would you do to any other way but anyways let's go ahead and continue so the section down here is the only part the only portion that you're going to give to your employer in fact the IRS doesn't even get this page only your employer does and they're just going to take this information to make sure that they give it to payroll who is then going to process it and give you the correct withholdings it's all your basic information but we will come back and fill out sections five six and seven those are really the three main parts that we're going to fill out everything else here is just your information so let's go ahead and scroll down a little bit further now this is the page that you want to start with this is the personal allowances worksheet so what the personal allowances worksheet let's go ahead and get started on line a enter one for yourself so we're gonna start here line a enter one for yourself go ahead and put a 1 put one right there then we're gonna go ahead and look at line B enter one if you will file as married filing jointly in this scenario that we're gonna run today I am going to do it as married filing jointly so let's put a 1 there if you're not married filing jointly put 0 or leave it blank it doesn't matter this is this sheet is only for your reference that's that's the only reason that you're gonna have this you're not going to turn this in line see enter one if you will file as head of household we will not so we're just going to go ahead and put a line put a 0 put whatever you want on line D enter 1 if any of these 3 applies so the first bullet is you are single we are not or married filing separately we're not that either and have only one job well in our scenario we'll have only one job so I'll underline it just for reference and we'll put a 1 now if you had multiple jobs you would put 0 the second line there is you're married filing jointly have only one job and your spouse doesn't work now let's take a look at line D enter one if you're single or married filing separately and have only one job none of those apply to us so we're gonna go to the second one or you're married filing jointly have only one job and your spouse doesn't work so for our example that's one we'll check off because we are married filing jointly will have only one job and our spouse doesn't work so we're gonna put a 1 there in the third if neither of those applied and you look at the third bullet your wages from a second job or your spouse's wages or the total of both or $1,500 or less then you would again put a 1 there but we're not so we're just going to move on for this example we're not going to have any children so child tax credit we're gonna skip that but if you do have children and you do want to fill this out and your total income just read the it's if your total income will be less than seventy one thousand two hundred and one dollars enter for for each eligible child now since we're married filing jointly and if it's a hundred three thousand three hundred and fifty one right there if married filing jointly if it's that number or less enter for for each eligible child so if you have to be children go ahead and enter 12 to 8 and if you have one child enter four and for this example we're going to enter zero because we're not gonna have any children in this example so child tax credit that's what you would do there now as you can see in that second bullet the amount that you could take for the child tax credit decreases the more money you earn so if you earn over the seventy one thousand two hundred and one but less than seven hundred and seventy nine thousand fifty dollars or this threshold right here if you're married filing jointly which is a hundred and three thousand to three fifty one two three hundred and forty five thousand eight hundred and fifty then you're only going to enter in two for each eligible child so it's two four six so on and so forth and if it's your incomes even higher than that if it's one hundred and seventy nine fifty one to two hundred thousand or for married filing jointly three hundred forty five thousand eight hundred and fifty one to four hundred thousand so four hundred thousand is the child tax credit phase out the complete phase-out at four hundred thousand enter one for each eligible child if you make over four hundred thousand dollars as a household married filing jointly then you do not qualify for the child tax credit and you would enter in zero as you can see in the next bullet if you if your total income will be higher than two hundred thousand or four hundred thousand if married filing jointly and there's zero so we're just going to enter zero because again for this example no kids now for wine F credit for other dependents now if you do have other dependents go ahead and enter in line F four credits for other dependents if not go ahead cross it off put zero move on now we're gonna take a look at line g-- o-- their credits now this is a big one if you do have other credits you're gonna want to take a look at this i'm not going to go into in this particular video let me pull up some of the credits that you can consider if you're looking for items for line G so here's the 2018 version for the worksheet 1-6 and I'm gonna see if I can zoom in here if you're taking a look you could see the child tax credit child for other dependents credits for the elderly or disabled credits for children and dependent care expenses education credits adoption credits foreign tax credits retirement savings contribution credits that's three that's the savers credit and nine we have earned income credit or a premium tax credit for health care so you have all these different credits that can make adjustments to your overall income and change the outcome of your w-4 so you want to take a closer look at the other credits but for this example I'm not going to go through those other credits and if we jump down so I'm going to put a line there if we jump down to line H this is where we're going to put our answer so we're going to add this up and we have three so we have one here two here three there there you go line 3h now this next section is deductions adjustments and additional income worksheet now the big thing that changed here was the standard deduction increase to twenty four thousand four twenty eighteen and now you can see that it's twenty four thousand four hundred for 2019 that's married filing jointly and you can see what it is for singles and head of household so these standard deductions increase significantly in the 2017 tax cuts and Jobs Act so much that I think if the number is like 19 million less people are gonna have to file or itemize their deductions so it's really simplifying the whole process now if you're still one of those people who are gonna itemize then you want to fill out this section otherwise skip it and go on if you're not going to itemize so if you don't have over twenty four thousand four hundred dollars and itemized deductions then you're just going to take the standard deduction so now that we have our answer on line H we can go back up here and we can fill this section out so we're going to go ahead and put our name so I'll put Travis circle your social security numbers your zero 0 - 0 0 - 0 0 0 0 and your home address 1 2 3 this street Tampa Florida 3 3 6 so it's you now for section 3 you want to check off that we're married married filing jointly of course if you're singles check that off and in line 5 that's where you want to put our answer so we are going to head and put number 3 3 is the amount of allowances that's lying 5 6 is any additional amounts you want withheld from your paycheck for this example we are not going to withhold anything additionally because we're putting in a number 3 therefore the allowances now remember with allowances when you're talking about allowances the higher the allowances the bigger your paycheck because we're withholding less so we're putting less aside for taxes now this doesn't actually change your tax liability at the end of the year if you're paying it now or at the end of the year that number is going to be exactly the same and for line 7 since we have an for line 7 since we will have to withhold we're just gonna go ahead and put a line there because we are not exempt so go ahead and sign it put the date and then put an 8 9 and 10 these boxes down here 8 9 and 10 you're either you or your employer can fill those out just give it to your employer they're probably gonna put the home office address the date you started employment and their AI n the employers AI n is basically the same as your social security it's just for the business so they will have that if you do not so don't worry about it that's all you need to do just cut it right here rip it off you can make a copy for your records but give this to your employer and they'll be able to make the adjustment in order to make sure that your withholding the correct amount now I did the paper version and I didn't go into the two jobs worksheet because we only had one job in this example which I can do for another video but the thing that you want to understand it's going through this it only goes over the amount of allowances it doesn't give you any idea of what your tax liability is actually going to be or the size of your paycheck that you're going to get which you can estimate from the online version so let me go over the 2019 version really quickly if the online version and you're going to see that it's going to be the same but it's going to give us a little bit more information so married filing jointly no dependents click continue and I'm just going to zoom through this so you can see we're gonna put a hundred and thirty thousand for the income no bonuses and I'm gonna put one thousand four hundred and seventy-six for the withholding is your a date you can get that from your pay stub so if it's done correctly that's what it'll be otherwise put whatever the withholdings are and it will give you an accurate answer click continue we're taking the standard deduction now you can see right here there's your three allowances same amount as before but here's the extra information we know that our total tax liability is going to be fourteen thousand nine hundred and forty nine dollars or that's the estimate based on the information that we put into the calculator so if we did have other credits or other deductions like 401ks IRAs or all those other credits I talked about before that's going to adjust the amount that's needed for the withholdings and this is a much quicker way to do it so if you just do the paper version you're only going to get the answer you're not going to get the actual tax liability and that is a huge benefit because if you can figure out how much your taxes are going to be and what your paycheck is going to be then at that point you can take some of that money and you can pay off debt or you can save it there's other things that you can do with the extra dollars that you're getting in your paycheck rather than getting a huge refund at the end of the year so if you're making these adjustments the online calculator is the best way to do it and that's exactly what the IRS says so anywhere that you're reading online they're adding to it all the time they want you to do the online calculator because it's way easier to do and especially as your situation gets more complicated then the calculator becomes even more valuable and more power if you want to see other versions let me know in the comments down at the bottom and if you've enjoyed this video be sure to subscribe and leave your comments down at the bottom Music you Music