1.In each of the following independent situations, determine the maximum withholding allowances permitted that Eli (an...

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.

		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, two of whom qualify for the child tax credit.
d.	Eli is married to Vera, an employed spouse who earns $25,000, and they have three dependent children, two of whom 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 allowances. The wages from each job exceed $1,500.

Solutions

Expert Solution

(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

ekkarill92 answered 1 year ago

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