Form W-4 (2006), Page 2. Summary: This is an example of Form W-4 (2006), 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 2006 tax
return.
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Under Deductions and Adjustments Worksheet:
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“1. Enter an estimate of your 2006 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 2006, you may have to reduce
your itemized
deductions if your income is over $150,500 ($75,250 if married filing separately). See Worksheet 3 in Publication 919 for
details.)”
field
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“2. Enter: $10,300 if married filing jointly or qualifying widow(er); $7,550 if head of household; $5,150 if single; $5,150
if married filing
separately.” field
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“3. Subtract line 2 from line 1. If line 2 is greater than line 1, enter 0” field
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“4. Enter an estimate of your 2006 adjustments to income, including alimony, deductible I.R.A. contributions, and student loan
interest” field
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“5. Add lines 3 and 4 and enter the total. (Include any amount for credits from Worksheet 7 in Publication 919)” field
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“6. Enter an estimate of your 2006 nonwage income (such as dividends or interest)” field
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“7. Subtract line 6 from line 5. Enter the result, but not less than 0” field
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“8. Divide the amount on line 7 by $3,300 and enter the result here. Drop any fraction” field
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“9. Enter the number from the Personal Allowances Worksheet, line H, page 1” field
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“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
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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.
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“1. Enter the number from line H, page 1 (or from line 10 above if you used the Deductions and Adjustments Worksheet)” field
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“2. Find the number in Table 1 below that applies to the lowest paying job and enter it here” field
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“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.
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“4. Enter the number from line 2 of this worksheet” field
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“5. Enter the number from line 1 of this worksheet” field
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“6. Subtract line 5 from line 4” field
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“7. Find the amount in Table 2 below that applies to the highest paying job and enter it here” field
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“8. Multiply line 7 by line 6 and enter the result here. This is the additional annual withholding needed” field
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“9. Divide line 8 by the number of pay periods remaining in 2006. For example, divide by 26 if you are paid every two weeks
and you complete
this form in December 2005. 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
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