Bart and Jane Lee are married, file a joint return and have two dependent children. Bart begins a new job in 2015 and is asked to fill out a Form W-4. His monthly gross earnings will be $3,200. Jane does not work outside their home. Bart can claim three additional withholding allowances because he will have a large for-AGI deduction for substantial alimony paid to his ex-wife, Sue.
a. What is the correct number of withholding allowances on Form W-4?
b. What is the federal income tax, FICA and Medicare tax to be withheld using the wage bracket tables.
c. What disclosure procedures must Bart’s employer follow if Bart claims more than ten allowances?