most tax forms require complex calculations and table references to compute a key value, or may require additional information that is only relevant in some cases. Rather than merging the calculations within the primary form, they are oft offloaded on a separate worksheet. The worksheet may be combined within the filing package, or may only be a instrument for the filer to get the value, but without needing the worksheet to be filed.
As an instance, in the US, 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, and if they are overwitheld, the employee gets a refund for the overwitheld of taxes. There is a base formula for estimating the taxes that need to be settled, but various tax elements may lead it to be incorrect, like dependents, tax discounts, or income from other sources.
The W-4 form authorizes the employee to select an exclusion level to drop the tax elementing (to avoid overwitheld), or define an extra amount above the standard amount (to avoid underpayment). The form arrive with two worksheets, 1 to compute discounts, and the other to compute the outcome of other income (2nd job, wife job). The bottom number in each worksheet is utilized for fill out two 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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