Completing a W4
 

I'm supposed to complete a W4 form for my work and apparently there are special instructions for non-resident aliens such as our selves. The main issue is the amount of federal withholding allowances. Usually we're allowed to claim only 1 allowance, but I was wondering if anyone here has claimed 2 or even maybe 3 allowances. Any advice or insight would be much appreciated. Thanks.

Re: Completing a W4
 

I've never filled out one for myself, but I would not recommend putting more than two because at the end of the year you might have to pay back what wasn't deducted to you in the first place. I've seen that happen many times, people put a higher number (plus married) in order to get nothing deducted then they complain about it. So I would just put one and see how it goes at the end of the year.

Re: Completing a W4
 

You're correct. If you claim more than you actually have evidence for you'll have to pay back some money or you could even get audited.

I'm not aware of any special rules for us, so when I filled mine out I just put one since I don't have anyone else to claim.

Re: Completing a W4
 

I don't think there are any rules for DACA recipients, and I have seen a lot of people complain about how in they didn't get any money back...Duh! You put more allowances than you should and that's the result.

Re: Completing a W4
 

Thanks for the info guys. I'm not expecting a return which is pretty much a loan. I'd rather invest whatever money I save.

Re: Completing a W4
 

You are not a non-resident alien according to the IRS (who administers w4s).

Re: Completing a W4
 

Please explain.

Re: Completing a W4
 

You will be considered a U.S. resident for tax purposes if you meet the substantial presence test for a typical calendar year. To meet this test, you must be physically present in the United States on at least:
1. 31 days during the calendar year, and
2. 183 days during the 3-year period that includes the calendar year and 2 years prior, counting all the days you were present in those years.

If you qualify for DACA, you are treated as a resident alien in IRS terms.

Re: Completing a W4
 

i put 2 on mine. .i always have since 2007. .
i think with the increase in income this year I might have to pay
but i'd rather pay than get a refund. .as long as its not too much
I have to pay then I might lower it down to 1 for next year.

Re: Completing a W4
 

Thanks for that piece of info! I found it also in publication 519. :-D

Re: Completing a W4
 

I'm going to claim 2 as well. I don't care about refunds because it's essentially a loan. Why would I loan the government more of my money? I would rather have that extra bit every paycheck and get a smaller refund.

Re: Completing a W4
 

+1. At 0% at that.

Re: Completing a W4
 

I would agree, but again, I've seen it way too often that at the end people complain that they have to pay back too much or they aren't getting enough. I'm not saying this will happen to you...then again, I think '2' is good enough.

Re: Completing a W4
 

Well the theory behind claiming as much as your legally allowed to is a simple one:

You take the additional money you have each week in your paycheck and deposit it into an interest bearing account. At the end of the tax period, if you owe money you pay it out of this account -- the account that has been earning you interest -- and thus, you have a little left over. It doesn't have to be a zero-sum game.

This only works if you're a saver.