Publication 919: How Do I Adjust My Tax Withholding?;

This is archived information that pertains only to the 2004 Tax Year. If you
are looking for information for the current tax year, go to the Tax Prep Help Area.

Worksheet 7. Converting Credits to Withholding Allowances. Summary: This is an example of the worksheet used to figure an additional amount to enter on line 5 of the Form W-4 Deductions and Allowances Worksheet. The line items to be completed are:For more information on these credits, see What If I Can claim Tax Credits? earlier.

For lines 1 through 9, enter your projections for each of the credits.

“1. Credit for child and dependent care expenses. (See Caution below.)” field

“2. Credit for the elderly or the disabled” field

“3. Child tax credit (including additional child tax credit). (See Caution below.)” field

“4. Education credits” field

“5. Adoption credit” field

“6. Foreign tax credit” field

“7. Retirement savings contributions credit” field

“8. Other credits (including mortgage interest credit, credit for prior year minimum tax if you paid alternative minimum tax in a prior year, qualified electric vehicle credit, and general business credit)” field

“9. Earned income credit (unless you requested advance payment)” field

“10. Add lines 1 through 9. This is your total estimated tax credits” field

“11. Enter the appropriate number from one of the following credit tables. Use the table which matches your filing status. Find the line in the table that matches your total income. Then, enter here the amount shown next to your income” field

Married Taxpayers Filing Joint Returns or Qualifying Widow(er)

If combined estimated wages are $0 to $34,000; Multiply credits by 10.0

If combined estimated wages are $34,001 to $79,000; Multiply credits by 6.7

If combined estimated wages are $79,001 to $145,000; Multiply credits by 4.0

If combined estimated wages are $145,001 to $210,000; Multiply credits by 3.6

If combined estimated wages are $210,001 to $350,000; Multiply credits by 3.0

If combined estimated wages are $350,001 and over; Multiply credits by 2.8

Single Taxpayers

If estimated wages are $0 to $15,000; Multiply credits by 10.0

If estimated wages are $15,001 to $38,000; Multiply credits by 6.7

If estimated wages are $38,001 to $81,000; Multiply credits by 4.0

If estimated wages are $81,001 to $165,000; Multiply credits by 3.6

If estimated wages are $165,001 to $340,000; Multiply credits by 3.0

If estimated wages are $340,001 and over; Multiply credits by 2.8

Taxpayers Filing as Head of Household:

If estimated wages are $0 to $24,000; Multiply credits by 10.0

If estimated wages are $24,001 to $53,000; Multiply credits by 6.7

If estimated wages are $53,001 to $120,000; Multiply credits by 4.0

If estimated wages are $120,001 to $185,000; Multiply credits by 3.6

If estimated wages are $185,001 to $345,000; Multiply credits by 3.0

If estimated wages are $345,001 and over; Multiply credits by 2.8

Married Taxpayers Filing Separately

If estimated wages are $0 to $15,000; Multiply credits by 10.0

If estimated wages are $15,001 to 38,000; Multiply credits by 6.7

If estimated wages are $387,001 to 70,000; Multiply credits by 4.0

If estimated wages are $70,001 to 100,000; Multiply credits by 3.6

If estimated wages are $100,001 to 175,000; Multiply credits by 3.0

If estimated wages are $175,001 and over; Multiply credits by 2.8

“12. Multiply line 10 by line 11. Enter the result here and include it in the total on line 5 of the Form W-4 Deductions and Adjustments Worksheet. Caution. If you entered an amount on line 1 of this worksheet, enter 0 on line F of the Form W-4 Personal Allowances Worksheet. If you entered an amount on line 3 of this worksheet, enter 0 on line G of the Form W-4 Personal Allowances Worksheet” field