In: Accounting
1.In each of the following independent situations, determine the maximum withholding allowances permitted that Eli (an employee) is permitted on the Form W-4.
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(a) Eli can claimed 2 withholding allowances. One for personal withholding allowance and other one is special withholding allowance.
(b) 3 withholding allowances Eli can claimed. One for personal, one for spouse and other one is special withholding allowance.
(c) Total 5 withholding allowances Eli can claimed. one for personal, one for spouse and other 3 for depended children. Spouse income is more than $1000 so special withholding allowance is not allowed to claim.
(d) Eli can claim total 5 withholding allowances as mentioned above. Also, Eli can claim his dependent mother as an additional allowance.
(e) Eli cannot claim any withholding allowance for second job because Eli already taken from one employer and Eli's income exceeds more than $1000 from second job.
Note:
conditions for claiming for special withholding allowance if:
1 The employee is single and has only one job at a time
2 Employee is married , has only one job at a time and spouse does not work.
3 Employees has two jobs at one time and only one job pays more than $1000.
4 employee is married and both spouse work but only one job pay more than $1000