As you answer questions about her W-4, it will be helpful to know that:
She is not married and does not have any children.
Jane's parents still claim her as a dependent on their tax return.
Before you answer the following questions, make sure you read the paragraph on the W-4 form titled "Exemption from withholding" including the "Note."
Should Jane enter the number 1 on line C? Why or why not?
Group of answer choices
No because Jane has no dependents (children).
No because Jane is not married.
Yes because Jane is single with only one job.
No because Jane's parents still claim her as a dependent.
The correct answer is: No because Jane's parents still claim her as a dependent.
Line C on the W-4 form refers to the number of allowances the employee is claiming. An allowance represents a certain amount of income that is exempt from withholding for federal income tax purposes. In general, one allowance can be claimed for each dependent a person has.
In this case, Jane is not eligible to claim any allowances on line C because her parents still claim her as a dependent on their tax return. As long as someone else claims her as a dependent, she cannot claim any allowances. Therefore, the correct answer is no, she should not enter the number 1 on line C.
To determine whether Jane should enter the number 1 on line C of her W-4 form, we need to understand what line C represents and consider the information provided.
Line C of the W-4 form is related to the number of allowances claimed. The number of allowances claimed affects how much income tax will be withheld from Jane's paycheck. Each allowance represents a portion of her income that is not subject to withholding.
In this case, Jane has provided the following information:
- She is not married and does not have any children.
- Her parents still claim her as a dependent on their tax return.
Considering this information, the answer is "No, Jane should not enter the number 1 on line C." Here's why:
- No because Jane has no dependents (children): This is correct. Jane does not have children, so she does not qualify for any additional allowances related to dependents.
- No because Jane is not married: While it is true that Jane is not married, this is not the primary reason for not entering the number 1 on line C.
- Yes because Jane is single with only one job: Although Jane is single with only one job, this does not automatically entitle her to claim the number 1 on line C. The key factor here is her dependency status.
- No because Jane's parents still claim her as a dependent: This is the main reason why Jane should not enter the number 1 on line C. Since her parents claim her as a dependent, she cannot claim herself as an exemption. This means she should not claim any allowances on line C.
It's important to note that the W-4 form has more sections and instructions that need to be considered, so it's always helpful to read the form and instructions in detail to ensure accurate completion.
The correct answer is:
No because Jane's parents still claim her as a dependent.
According to the given information, Jane's parents still claim her as a dependent on their tax return. In such a case, Jane cannot claim an exemption for herself on her W-4 form. Therefore, she should not enter the number 1 on line C.