most tax forms require complicated calculations or table references to compute a key value, or may require additional data that is only relevant in some cases. Rather than incorporating the calculations into the main form, they are oftentimes offloaded on a separate worksheet. The worksheet may be incorporated into the filing package, or may only be a tool for the filer to get the value, but without requiring the worksheet to be filed.
As an instance, in the United States, income tax is calculated from the payments made by corporate to employees. If taxes are significantly underwithheld, there is a penalty to the employee at the end of the year, or if they are overpayment, the employee gets a refund for the overpayment of taxes. There is a base formula for estimating the taxes that require to be paid, but certain tax elements may lead it to be incorrect, such as burdens, tax deductions, or income from another sources.
The W-4 form permits the employee to opt an exclusion level to bring down the tax %factoring (to evade overpayment), or define an additional amount above the basic amount (to evade underpayment). The form arrive with 2 worksheets, 1 to compute discounts, or another to compute the outcome of another income (2nd job, spouse's job). The bottom numeric in each worksheet is utilized for fill out 2 if the lines in the main W4 form. The main form is filed with the employer, or the worksheets are discarded or kept by the employee.
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