J.K. Lasser's Your Income Tax 2013: For Preparing Your 2012 Tax Return

26.2 Income Taxes Withheld on Wages

The amount of income tax withheld for your wage bracket depends on your marital status and the number of allowances you claim. You file a withholding certificate, Form W-4, with your employer, indicating your status and allowances. Without a Form W-4, your employer must withhold tax as if you are a single person with no exemptions

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Law Alert

Differential Wages Paid to Workers Joining Military

Employees who enlist or are called up to active military service may receive “differential wages” from their former employer to cover the difference between their military pay and the wages that were being received prior to joining the military. Income tax must be withheld from the differential wages, but not FICA tax (Social Security and Medicare).

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Planning Reminder

Adjust Withholdings

If you do not expect withholdings to meet your final tax liability, ask your employer to withhold a greater amount of tax; (26.1). On the other hand, if the withholding rate applied to your wages results in overwithholding, you may claim extra withholding allowances to reduce withholding during the year (26.4–26.5).

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Cash payments or the cash value of benefits paid to an employee by ...