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URL:  http://boards.fool.com/the-w-4-allows-for-additional-federal-20775338.aspx

Subject:  Re: What are additional withholdings? Date:  5/16/2004  2:25 PM
Author:  Jeanwa Number:  71849 of 121169

The W-4 allows for additional federal withholdigns. There are also withholdings for state. These are dollar amounts. If I've calculated my number of withholdings correctly, use pretax dollars for a 401k and health plan, why do I want more money withheld?

You may not...but for example, one of our employees has a rental. There is no withholding from the rent (duh), so they have an additional amount take out of their check each month so they don't end up owing at tax time. They could instead make payment directly to the IRS, but find it easier to have us do it for them.

Or if you have a large amount of interest income that would cause you to have higher tax liability than is covered with just your wages.



Jean

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