Question: Bart and Jane Lee are married, file a joint return and have two dependent children (twins, age 9). Bart begins a new job and is
Bart and Jane Lee are married, file a joint return and have two dependent children (twins, age 9). Bart begins a new job and is asked to fill out a Form W-4. His 2016 monthly gross earnings will be $3,200. Jane does not work outside their home. Bart can claim two 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 (see withholding table on page T-15)?
c. What disclosure procedures must Bart’s employer follow if Bart claims more than ten allowances?
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