most tax forms need complicated calculations also table references to calculate a key value, or may need supplemental data that is only relevant in some cases. Rather than incorporating the calculations into the main form, they are oft offloaded on a separate worksheet. The worksheet may be incorporated into the filing package, or may only be a equipment for the filer to figure out the value, but without requiring the worksheet to be filed.
As an instance, in the USA, income tax is hold from the payments made by company to employees. If taxes are significantly unpaid, there is a penalty to the employee at the end of the year, also if they are overpayment, the employee gets a refund for the overpayment of taxes. There is a basic formula for assuming the taxes that need to be paid, but some tax factors may lead it to be incorrect, like burdens, tax discounts, or income from other sources.
The W-4 form enables the employee to choose an exclusion level to reduce the tax %factoring (to avoid overpayment), or establish an extra amount above the standard number (to avoid underpayment). The form arrive with two worksheets, 1 to calculate exemptions, also another to calculate the result of other income (second job, husband job). The bottom number in each worksheet is used to fill out two if the lines in the main W4 form. The main form is filed with the employer, also the worksheets are discarded or kept by the employee.
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