Publication 919: How Do I Adjust My Tax Withholding?;

This is archived information that pertains only to the 2004 Tax Year. If you
are looking for information for the current tax year, go to the Tax Prep Help Area.

Form W-4 (2005), Page 2. Summary: This is an example of Form W-4 (2005), page 2. The line items to be completed are:Note: Use this worksheet only if you plan to itemize deductions, claim certain credits, or claim adjustments to income on your 2005 tax return.

Under Deductions and Adjustments Worksheet:

“1. Enter an estimate of your 2005 itemized deductions. These include qualifying home mortgage interest, charitable contributions, state and local taxes, medical expenses in excess of 7.5% of your income, and miscellaneous deductions. (For 2005, you may have to reduce your itemized deductions if your income is over $145,950 ($72,975 if married filing separately). See Worksheet 3 in Publication 919 for details.)” field

“2. Enter: $10,000 if married filing jointly or qualifying widow(er); $7,300 if head of household; $5,000 if single; $5,000 if married filing separately.” field

“3. Subtract line 2 from line 1. If line 2 is greater than line 1, enter 0” field

“4. Enter an estimate of your 2005 adjustments to income, including alimony, deductible I.R.A. contributions, and student loan interest” field

“5. Add lines 3 and 4 and enter the total. (Include any amount for credits from Worksheet 7 in Publication 919)” field

“6. Enter an estimate of your 2005 nonwage income (such as dividends or interest)” field

“7. Subtract line 6 from line 5. Enter the result, but not less than 0” field

“8. Divide the amount on line 7 by $3,200 and enter the result here. Drop any fraction” field

“9. Enter the number from the Personal Allowances Worksheet, line H, page 1” field

“10. Add lines 8 and 9 and enter the total here. If you plan to use the Two-Earner/Two-Job Worksheet, also enter this total on line 1 below. Otherwise, stop here and enter this total on Form W-4, line 5, page 1” field

Under Two-Earner/Two-Job Worksheet: (See Two earner/two jobs). Note: Use this worksheet only if the instructions under line H on page 1 direct you here.

“1. Enter the number from line H, page 1 (or from line 10 above if you used the Deductions and Adjustments Worksheet)” field

“2. Find the number in Table 1 below that applies to the lowest paying job and enter it here” field

“3. If line 1 is more than or equal to line 2, subtract line 2 from line 1. Enter the result here (if zero, enter 0) and on Form W-4, line 5, page 1. Do not use the rest of this worksheet” field. Note: If line 1 is less than line 2, enter 0 on Form W-4, line 5, page 1. Complete lines 4–9 below to calculate the additional withholding amount necessary to avoid a year-end tax bill.

“4. Enter the number from line 2 of this worksheet” field

“5. Enter the number from line 1 of this worksheet” field

“6. Subtract line 5 from line 4” field

“7. Find the amount in Table 2 below that applies to the highest paying job and enter it here” field

“8. Multiply line 7 by line 6 and enter the result here. This is the additional annual withholding needed” field

“9. Divide line 8 by the number of pay periods remaining in 2005. For example, divide by 26 if you are paid every two weeks and you complete this form in December 2004. Enter the result here and on Form W-4, line 6, page 1. This is the additional amount to be withheld from each paycheck” field