Form W-4 provides a set of worksheets to help you figure out your withholding allowances. But remember for nonresident alien, you usually can claim only one withholding allowance, except you are a resident of Canada or Mexico, or you are a U.S. national.
Change your allowances:
Once you feel you withhold too much or too little tax, you can change your withholding allowances by giving your employer a new Form W-4.
Please be aware of the following changes happen in your life, they may cause changes in your allowances:
| Factor | Examples |
| Lifestyle change | Marriage, Divorce, Birth or adoption of child, loss of an exemption, Purchase of a new home, Retirement, Filing chapter 11 bankruptcy |
| Wage income | You or your spouse start to stop working, or start or stop a second job |
| Change in the amount of taxable income not subject to withholding | Interest income, dividends, capital gains, self-employment income, IRA distributions |
| Change in the amount of adjustments to income | IRA deduction, student loan interest deduction, Ailmony expense |
| Change in the amount of itemized deductions or tax credits | Medical expenses, Taxes, Interest expense, Gifts to charity, Job expenses, Dependent care expenses, Education credit, Child tax credit, Earned income credit |
Source: Publication 505 Page 4
If your employer agrees to use Cumulative wage method, it means you may be able to compensate for this for the rest of the year. You must ask your employer in writing to use this method. To be eligible, you must use the same payroll period since the beginning of the year.
PSQ
Source: http://www.irs.gov
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