Many tax forms require complex calculations and table references to compute a key value, or may require supplemental data that is only relevant in some cases. Rather than incorporating the calculations into the primary form, they are oftentimes offloaded on a separate worksheet. The worksheet may be merged into the filing package, or may only be a tool for the filer to figure out the value, but without requiring the worksheet to be filed.
As an example, in the US, income tax is hold from the salary made by company to employees. If taxes are significantly underwithheld, there is a penalty to the employee at the end of the year, and if they are overwitheld, the employee gets a refund for the overwitheld of taxes. There is a basic formula for assuming the taxes that need to be paid, but certain tax factors may lead it to be incorrect, alike dependents, tax discounts, or income from other sources.
The W-4 form permits the employee to opt an exemption level to reduce the tax %factoring (to avoid overwitheld), or define an extra amount over the basic number (to avoid underpayment). The form arrive with 2 worksheets, 1 to compute discounts, and the other to compute the result of other income (2nd job, wife job). The bottom numeric in each worksheet is utilized for fill out 2 if the lines in the primary W4 form. The primary form is filed with the employer, and the worksheets are discarded or kept by the employee.
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