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The W-4, withholding, and your refund

The W-4, withholding, and your refund
Unit 2 — Getting paid
 Unit 2 — Getting paid
The W-4, withholding, and your refund
 The W-4, withholding, and your refund
A tax refund is not a bonus. It is your own money, returned without interest, after the government held it for a year.
 A tax refund is not a bonus. It is your own money, returned without interest, after the government held it for a year.
Lesson 4 of 8 — about 12 minutes — CareerStart.ai Financial Literacy
 Lesson 4 of 8 — about 12 minutes — CareerStart.ai Financial Literacy
What you will be able to do
What you will be able to do
 What you will be able to do
By the end of this lesson
 By the end of this lesson 1
Complete a W-4 correctly for a single job
 Complete a W-4 correctly for a single job 2
Explain over- and under-withholding
 Explain over- and under-withholding 3
Know when to submit a new W-4
 Know when to submit a new W-4
The form is shorter than it looks
Unit 2 — Getting paid
 Unit 2 — Getting paid
The form is shorter than it looks
 The form is shorter than it looks
If you have one job, no dependents, and no other income, you complete Step 1 (name, address, Social Security number, filing status) and Step 5 (sign it). That is the whole form. Steps 2 through 4 exist for multiple jobs, dependents, and other income.
 If you have one job, no dependents, and no other income, you complete Step 1 (name, address, Social Security number, filing status) and Step 5 (sign it). That is the whole form. Steps 2 through 4 exist for multiple jobs, dependents, and other income.
Step 2 is the one that catches people. If you work two jobs at the same time, each employer withholds as though it is your only income — so both under-withhold, and you owe at tax time. Completing Step 2 fixes it.
 Step 2 is the one that catches people. If you work two jobs at the same time, each employer withholds as though it is your only income — so both under-withhold, and you owe at tax time. Completing Step 2 fixes it.
Refund or bill: both mean the estimate was off
Unit 2 — Getting paid
 Unit 2 — Getting paid
Refund or bill: both mean the estimate was off
 Refund or bill: both mean the estimate was off
Withhold too much and you get a refund, which feels good but means you loaned money interest-free all year. Withhold too little and you owe, which can be a genuinely painful surprise. The target is landing near zero.
 Withhold too much and you get a refund, which feels good but means you loaned money interest-free all year. Withhold too little and you owe, which can be a genuinely painful surprise. The target is landing near zero.
You can submit a new W-4 to your employer at any time — after a raise, a second job, or a change at home. You are not locked into the version you signed on day one.
 You can submit a new W-4 to your employer at any time — after a raise, a second job, or a change at home. You are not locked into the version you signed on day one.
Key term: Withholding
Key term
 Key term
Withholding
 Withholding
Money your employer removes from each paycheck and sends to the government on your behalf, as an estimated prepayment of the tax you will owe. Your W-4 tells them how much to estimate.
 Money your employer removes from each paycheck and sends to the government on your behalf, as an estimated prepayment of the tax you will owe. Your W-4 tells them how much to estimate.
Why it matters at work
Why it matters at work
 Why it matters at work
Bring your physical Social Security card and photo ID on your first day. The I-9 verification usually will not accept a photo on your phone.
 Bring your physical Social Security card and photo ID on your first day. The I-9 verification usually will not accept a photo on your phone.
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