Problem 13-47 (LO. 5) In each of the following independent situations, determine

ID: 2590506 • Letter: P

Question

Problem 13-47 (LO. 5)

In each of the following independent situations, determine the maximum withholding allowances permitted that Eli (an employee) is permitted on the Form W-4.

Maximum
Withholding
Allowances a. Eli is single with no dependents. b. Eli is married to a nonemployed spouse, and they have no dependents. c. Eli is married to Vera, an employed spouse who earns $25,000, and they have three dependent children. Eli and Vera do not qualify for the child tax credit. On the Form W–4 that she filed with the employer, Vera claimed zero allowances. d. Eli is married to Vera, an employed spouse who earns $25,000, and they have three dependent children. Eli and Vera do not qualify for the child tax credit. Eli and Vera fully support Eli's mother, who lives with them. The mother (age 70 and blind) qualifies as their dependent. e. Eli is single with no dependents but works for two employers, one on a full-time basis and the other on a part-time basis. The Form W–4 filed with the first employer (the full-time job) reflects two withholding exemptions. The wages from each job exceed $1,500. f. Eli is married to an unemployed spouse with no dependents but works for two employers, one on a full-time basis and the other on a part-time basis. The Form W–4 filed with the first employer (the full-time job) reflects two withholding exemptions. The wages from each job exceed $1,500.

Explanation / Answer

Maximum withholding allowance:

Maximum
Withholding
Allowances

Eli is single with no dependents.

Eli can claim 2 withholding allowances. One for personal and the other is special withholding allowance.

Eli is married to a non-employed spouse, and they have no dependents.

Eli can claim 3, one for personal, one for spouse and other one is special withholding allowance.

Eli is married to Vera, an employed spouse who earns $25,000, and they have three dependent children. Eli and Vera do not qualify for the child tax credit. On the Form W–4 that she filed with the employer, Vera claimed zero allowances.

Eli can claim a total of 5, one for personal, one for spouse and other 3 for their depended children and the special withholding allowance is not allowed to claim because spouse income is more than $1,000.

Eli is married to Vera, an employed spouse who earns $25,000, and they have three dependent children. Eli and Vera do not qualify for the child tax credit. Eli and Vera fully support Eli's mother, who lives with them. The mother (age 70 and blind) qualifies as their dependent.

Eli can claim a total of 5.
here, Eli can claim his dependent mother as an additional allowance.

Eli is single with no dependents but works for two employers, one on a full-time basis and the other on a part-time basis. The Form W–4 filed with the first employer (the full-time job) reflects two withholding exemptions. The wages from each job exceed $1,500.

Eli cannot claim any withholding allowance in his second job because he already taken from one employer and his income exceeds more than $1,000 from second job.

Eli is married to an unemployed spouse with no dependents but works for two employers, one on a full-time basis and the other on a part-time basis. The Form W–4 filed with the first employer (the full-time job) reflects two withholding exemptions. The wages from each job exceed $1,500.

Eli cannot claim from second employer. He can continue his two withholding allowance from first employer.

Note: The conditions for claiming for special withholding allowance if:
1.the employee is single and has only one job at a time,
2.the employee is married, has only one job at a time, and his spouse does not work,
3.the employee has two jobs at one time and only one job pays more than $1,000, or
4. the employee is married and both spouses work but only one job pays more than $1,000.