Department of the Treasury Contents

Internal Revenue Service Reminder................................. 1

Introduction .............................. 1

Publication 919 Purpose of This Publication .................. 2

(Rev. January 2006)

Cat. No. 63900P Checking Your Withholding .................. 2

Why Should I Check My Withholding? ........ 2

When Should I Check My Withholding? ....... 2

How Do I How Do I Check My Withholding? ............ 3

What If Not Enough Tax Is Being Withheld? .... 3

What If Too Much Tax Is Being Withheld? ..... 3

Adjust My Tax Adjusting Your Withholding .................. 3

How Do I Adjust My Withholding? ............ 3

Withholding? When Will My New Form W-4

Go Into Effect? ....................... 5

Form W-4 ................................. 6

Worksheet 1. Projected Tax for 2006 ........... 9

Worksheets 1a – 1d. Tax Rate Schedule

Worksheets for 2006 .................... 10

Worksheet 2. Projected Withholding for

2006 .................................. 12

Worksheet 3. Itemized Deductions Limit ........ 13

Worksheet 4. Reduction of Exemption

Amount ............................... 13

Worksheet 5. Figuring Tax If You Expect To

Have Capital Gains or Qualified Dividends ... 14

Worksheet 6. Self-Employment Tax ............ 15

Worksheet 7. Converting Credits to

Withholding Allowances ................. 16

2006 Standard Deduction Tables .............. 17

How To Get Tax Help ....................... 18

Reminder

Photographs of missing children. The Internal Revenue Service is a proud partner with the National Center for

Missing and Exploited Children. Photographs of missing

children selected by the Center may appear in this publication on pages that would otherwise be blank. You can help

bring these children home by looking at the photographs

and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child.

Get forms and other information

faster and easier by: Introduction Internet • www.irs.gov The federal income tax is a pay-as-you-go tax. This means

you must pay the tax as you earn or receive income during

the year.

As a wage earner, you pay federal income tax by having

www.irs.gov/efile it withheld from your pay during the year. This is your

“withholding.” Your withholding is based on the number of
allowances you claim when you file Form W-4, Employee’s You should check your withholding if there are personal

Withholding Allowance Certificate, with your employer. or financial changes in your life or changes in the law that

might change your tax liability. See Figure 1.

Comments and suggestions. We welcome your comments about this publication and your suggestions for Figure 1. Personal and Financial Factors

future editions. You may want to check your withholding after

You can write to us at the following address: events in your life that are likely to affect your tax

liability. Examples are listed below.

Internal Revenue Service

Individual Forms and Publications Branch Factor Examples

SE:W:CAR:MP:T:I

Lifestyle change Marriage 1111 Constitution Ave. NW, IR-6406 Divorce Washington, DC 20224 Birth or adoption of child

Loss of an exemption

We respond to many letters by telephone. Therefore, it Purchase of a new home

Retirement would be helpful if you would include your daytime phone

number, including the area code, in your correspondence. Wage income You or your spouse start or

You can email us at *taxforms@irs.gov. (The asterisk stop working, or start or stop a

must be included in the address.) Please put “Publications second job

Comment” on the subject line. Although we cannot re- Increased or decreased Interest income spond individually to each email, we do appreciate your income not subject to Dividends feedback and will consider your comments as we revise withholding Capital gains our tax products. Self-employment income

IRA (including Roth IRA) Tax questions. If you have a tax question, visit distributions www.irs.gov or call 1-800-829-1040. We cannot answer

tax questions at either of the addresses listed above. Increased or decreased IRA deduction

Ordering forms and publications. Visit www.irs.gov/ adjustments to income Student loan interest deduction

Alimony expense formspubs to download forms and publications, call

1-800-829-3676, or write to the National Distribution Increased or decreased Medical expenses Center at the address shown under How To Get Tax Help itemized deductions or tax Taxes in the back of this publication. credits Interest expense

Gifts to charity

Job expenses

Education credit Purpose of This Publication

The purpose of this publication is to help you check your

withholding and, if necessary, prepare Form W-4 to adjust When Should I Check My

your withholding. When you first begin a job, you must Withholding?

complete a Form W-4 and give it to your employer to

establish your initial withholding. You can adjust your with- The earlier in the year you check your withholding, the

holding by filing a new Form W-4 with your employer at any easier it is to get the right amount of tax withheld.

time. You may want to check your withholding when any of

the following situations occur.

Note. You do not have to file Form W-4 each year unless 1. You receive a paycheck stub (statement) covering a you need to adjust your withholding. full pay period in 2006, showing tax withheld based

on 2006 tax rates.

Checking Your Withholding 2. You prepare your 2005 tax return and get a:

a. Big refund, or This section explains why, when, and how to check your

withholding to see if you will have enough, but not too b. Balance due that is:

much, tax withheld for 2006. i. More than you can comfortably pay, or

Why Should I Check My Withholding? ii. Subject to a penalty.

You should try to have your withholding match your actual 3. There are changes in your life or financial situation tax liability. If not enough tax is withheld, you will owe tax at that affect your tax liability. See Figure 1. the end of the year and may have to pay interest and a

penalty. If too much tax is withheld, you will lose the use of 4. There are changes in the tax law that affect your tax

that money until you get your refund. liability. See Tax Law Changes, below.

Page 2
You must give your employer a new Form W-4 to ment. For more information on estimated tax, get Publicaadjust your withholding within 10 days of any tion 505, Tax Withholding and Estimated Tax. CAUTION event that decreases the number of withholding

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allowances you can claim, such as your divorce if you are What If Too Much Tax Is Being claiming married status. Withheld?

Tax Law Changes If too much tax is withheld, you may receive a large refund

when you file your return. If you would prefer to receive the

If there are tax law changes that increase your tax for 2006 money during the year, you may be able to decrease your

and you do not increase your withholding, you may have to withholding by giving your employer a new Form W-4.

pay tax when you file your return. If there are changes that There is a good chance you are having too much tax

decrease your tax for 2006 and you do not decrease your withheld if:

withholding, you may get a larger refund. You can get this • You got a big refund for 2005 and your income, money back earlier by reducing your withholding. adjustments, deductions, and credits will remain For information about changes in the law for 2005 and about the same this year, 2006, get Publication 553, Highlights of 2005 Tax

Changes, or visit the IRS website at www.irs.gov. • Your income will remain about the same as last

year, but your adjustments, deductions, or credits

will increase significantly, or How Do I Check My Withholding? • You got a refund last year; your income, adjust- You can use the worksheets and tables in this publication ments, and deductions will remain about the same

to see if you are having the right amount of tax withheld. as last year; but you will qualify for one or more tax

Follow these steps. credits this year that you did not qualify for last year.

1. Fill out Worksheet 1 (see page 9) to project your total Note. Adjustments to income are listed on Form 1040 and federal income tax liability for 2006. Form 1040A near the bottom of page 1. Itemized deduc2. Fill out Worksheet 2 (see page 12) to project your tions appear on Schedule A (Form 1040). Credits appear

total federal withholding for 2006 and to compare on page 2 of Form 1040 and Form 1040A. See also

your projected tax to your projected withholding. Figures 1 and 2.

If you are not having enough tax withheld, Worksheet 2

will show you how much more to have withheld each

payday. Adjusting Your Withholding

If you are having more tax withheld than you need to

have withheld, Worksheet 2 will refer you to How Do I This section explains how to adjust your withholding.

Decrease My Withholding. If you are not having enough tax withheld or you are

having too much tax withheld, you should either increase

What If Not Enough Tax Is Being or decrease your withholding.

Withheld? How Do I Adjust My Withholding?

If not enough tax will be withheld, you should give your You increase or decrease your withholding by filling out a employer a Form W-4 showing either a reduced number of new Form W-4 and giving it to your employer. You can use withholding allowances or an additional amount to be with- the worksheets and information in this publication to help held from your pay. See How Do I Increase My Withhold- you complete Form W-4. You can complete the Form W-4 ing, later. on pages 6 and 7 and give it to your employer. There is a good chance you are not having enough tax

withheld if:

How Do I Increase My Withholding? • You have more than one job at a time,

There are two ways to increase your withholding. You can: • Your spouse also works,

• You have income not subject to withholding, such as • Decrease the number of allowances you claim on

Form W-4, line 5, or capital gains, rental income, interest, dividends, or

• You owe other taxes such as self-employment tax or • Enter an additional amount that you want withheld

from each paycheck on Form W-4, line 6. household employment taxes.

If your employer cannot withhold enough additional tax How to request an additional amount to be withheld. from your pay, you may need to make estimated tax You can request that an additional amount be withheld payments. This might be the case if your pay is low and from each paycheck by following these steps. you have substantial nonwage income, such as interest,

dividends, capital gains, or earnings from self-employ- 1. Complete Worksheets 1 and 2.

Page 3
2. Complete a new Form W-4 if the amount on Work- How Do I Decrease My Withholding?

sheet 2, line 5, is more than you want to have to pay

or would cause you to pay a penalty when you file If you expect to have more tax withheld than your projected

tax liability for 2006, you may be able to decrease your your tax return for 2006. withholding by increasing the number of allowances that 3. Enter on the new Form W-4, line 5, the same number you claim on Form W-4. of withholding allowances your employer now uses You can claim only the number of allowances to for your withholding. This is the number of al- which you are entitled. To see if you can de- lowances you entered on the last Form W-4 you CAUTION crease your withholding by increasing your al-

!

gave your employer. lowances, see the Form W-4 instructions and the rest of

4. Enter on the new Form W-4, line 6, the amount from this publication.

Worksheet 2, line 6. How do I increase the number of allowances I can

5. Give your newly completed Form W-4 to your em- claim? You figure and increase the number of withholdployer. ing allowances you are entitled to claim as follows.

 If you have this additional amount withheld from your 1. Complete Worksheets 1 and 2. pay each payday, you should avoid owing a large amount 2. If your projected withholding is significantly more at the end of the year. than your projected tax, get a new Form W-4 (or use

the one on pages 6 and 7). Example. Using Worksheets 1 and 2, Steve figures that

his 2006 tax liability will be $5,000 and that his withholding 3. Complete the Personal Allowances Worksheet on

for the year will be $4,700. Steve’s tax will be un- Form W-4.

derwithheld by $300 ($5,000 − $4,700). He will have to pay 4. Use the remainder of the worksheets in this publica- this amount when he files his 2006 tax return or he can tion, as applicable. increase his withholding. Steve gets a new Form W-4 from 5. Complete the Deductions and Adjustments Work- his employer, who tells him that there are 50 paydays sheet on Form W-4 if you plan to itemize deductions, remaining in the year. Steve completes the form as before, claim adjustments to income, or claim tax credits and enters the same number of withholding allowances as from Worksheet 7 (see page 16) on your 2006 re- before, then enters $6 ($300 ÷ 50) on line 6 of the form. turn. This is the additional amount to be withheld from his pay

each payday. He gives the completed form to his em- 6. Complete the Two-Earner/Two-Job Worksheet on

ployer. Form W-4 if you meet the criteria on line H of the

Form W-4 Personal Allowances Worksheet.

What if I have more than one job or my spouse also 7. Fill out Form W-4.

has a job? You are likely to need to increase your with- 8. Enter the number of allowances you are entitled to holding if you have more than one job (or if you are married claim on Form W-4, line 5. filing jointly and your spouse also works). If this is the case,

you can increase your withholding for one or more of the 9. If the number of allowances you are entitled to claim

is different from the number you are already claim- jobs. ing, give the newly completed Form W-4 to your You can apply the amount on Worksheet 2, line 5, to employer. only one job or divide it between the jobs any way you

wish. For each job, determine the extra amount that you What if I can claim tax credits? Figure 2 shows tax want to apply to that job and divide that amount by the credits you may be able to use to reduce your withholding. number of paydays remaining in 2006 for that job. This will The Form W-4 Personal Allowances Worksheet only pro- give you the additional amount to enter on the Form W-4, vides rough adjustments for the child and dependent care line 6, you will file for that job. You need to file a Form W-4 credit (line F) and the child tax credit (line G). Complete

for each job for which you are changing your withholding. Worksheet 7 to figure these credits more accurately and

also take other credits into account.

Example. Meg Green works in a store. Her husband, Include the amount from Worksheet 7, line 12, in the

John, works full time in manufacturing. They file a joint total on line 5 of the Deductions and Adjustments Workincome tax return. When they fill out Worksheets 1 and 2, sheet. Then complete the Deductions and Adjustments

Worksheet 2, line 5, shows that they will not have enough Worksheet and the rest of Form W-4.

tax withheld. They can divide the amount on Worksheet 2, If you take the child and dependent care credit line 6, any way they want. They can enter an additional into account on Worksheet 7, enter -0- on line F amount on either of their Forms W-4, or divide it between CAUTION of the Personal Allowances Worksheet. If you

!

them. They decide to have all of the additional amount take the child tax credit into account on Worksheet 7, enter

from line 6 withheld from John’s wages, so they enter on -0- on line G of the Personal Allowances Worksheet.

his Form W-4, line 6, the number from their completed

Worksheet 2, line 6. Both claim the same number of al- Example. Brett and Alyssa are married and expect to

lowances as before. file a joint return for 2006. Their combined estimated

Page 4
wages are $68,000. Their projected tax credits include a 8. They take the result on line 12 and add it to their

child and dependent care credit of $960 and a mortgage other adjustments on line 5 of the Form W-4 Deducinterest credit of $1,700. tions and Adjustments Worksheet.

They use Worksheet 7 to see whether they can convert 9. They finish filling out the Deductions and Adjust- their tax credits into additional allowances. ments Worksheet.

1. They enter their expected child and dependent care 10. Because they chose to account for their child and credit, $960, on Worksheet 7, line 1. dependent care credit this way, they enter -0- on line

F of the Personal Allowances Worksheet. 2. They enter their expected mortgage interest credit,

$1,700, on Worksheet 7, line 8.

3. They add these credits and enter the total, $2,660, When Will My New Form W-4 on line 10. Go Into Effect?

4. Because they are married filing a joint return, they

use the table for married filing jointly or qualifying If the change is for the current year, your employer must

widow(er). put your new Form W-4 into effect no later than the start of

the first payroll period ending on or after the 30th day after 5. They see that their combined estimated wages, the day on which you give your employer your revised $68,000, falls between $36,001 and $82,000, and Form W-4.

that the number to the right of this range is 6.7. If the change is for next year, your new Form W-4 will

6. They enter 6.7 on line 11. not take effect until next year.

7. They multiply line 10 by line 11 and enter the result,

$17,822, on line 12.

Figure 2. Tax Credits

For more information about the ... See ...

Adoption credit Form 8839 Instructions

Alternative fuel vehicle refueling property credit Form 8911 Instructions

Alternative motor vehicle credit Form 8910 Instructions

Child and dependent care expenses, credit for Publication 503, Child and Dependent Care Expenses

Child tax credit (including additional child tax credit) Instructions for Form 1040 or Form 1040A

Clean renewable energy bond credit Form 8912 Instructions

District of Columbia first-time homebuyer credit carryforward Form 8859 Instructions

Earned income credit (unless you requested advance Publication 596, Earned Income Credit

payment of the credit)

Education credits Publication 970, Tax Benefits for Education

Elderly or the disabled, credit for the Publication 524, Credit for the Elderly or the Disabled

Foreign tax credit (except any credit that applies to wages Publication 514, Foreign Tax Credit for Individuals

not subject to U.S. income tax withholding because they are

subject to income tax withholding by a foreign country)

General business credit Form 3800, General Business Credit

Health coverage tax credit Publication 502, Medical and Dental Expenses

Mortgage interest credit Publication 530, Tax Information for First-Time Homeowners

Prior year minimum tax, credit for (if you paid alternative Form 8801 Instructions

minimum tax in an earlier year)

Qualified electric vehicle credit Form 8834 Instructions

Qualified zone academy bond credit Form 8860 Instructions

Residential energy credits Publication 553, Highlights of 2005 Tax Changes

Retirement savings contributions credit Publication 590, Individual Retirement Arrangements (IRAs)

Page 5
Form W-4 (2006)

Purpose. Complete Form W-4 so that your

employer can withhold the correct federal income

tax from your pay. Because your tax situation may

change, you may want to refigure your withholding

each year.

Head of household. Generally, you may claim

head of household filing status on your tax return

only if you are unmarried and pay more than 50%

of the costs of keeping up a home for yourself and

your dependent(s) or other qualifying individuals.

See line E below. Exemption from withholding. If you are exempt,

complete only lines 1, 2, 3, 4, and 7 and sign the

form to validate it. Your exemption for 2006

expires February 16, 2007. See Pub. 505, Tax

Withholding and Estimated Tax. Check your withholding. After your Form W-4

takes effect, use Pub. 919 to see how the dollar

amount you are having withheld compares to your

projected total tax for 2006. See Pub. 919, especially if your earnings exceed $130,000 (Single) or

$180,000 (Married).

Basic instructions. If you are not exempt, complete

the Personal Allowances Worksheet below. The

worksheets on page 2 adjust your withholding

allowances based on itemized deductions, certain

credits, adjustments to income, or twoTwo earners/two jobs. If you have a working

spouse or more than one job, figure the total number

of allowances you are entitled to claim on all jobs

using worksheets from only one Form W-4. Your

withholding usually will be most accurate when all

allowances are claimed on the Form W-4 for the

highest paying job and zero allowances are claimed

on the others.

Personal Allowances Worksheet (Keep for your records.)

A Enter “1” for yourself if no one else can claim you as a dependent A

● You are single and have only one job; or

B Enter “1” if: ● You are married, have only one job, and your spouse does not work; or B

● Your wages from a second job or your spouse’s wages (or the total of both) are $1,000 or less.  

Enter “1” for your spouse. But, you may choose to enter “-0-” if you are married and have either a working spouse or

more than one job. (Entering “-0-” may help you avoid having too little tax withheld.)

C

C

D Enter number of dependents (other than your spouse or yourself) you will claim on your tax return D

E E

F F

H Add lines A through G and enter total here. (Note. This may be different from the number of exemptions you claim on your tax return.) H

● If you plan to itemize or claim adjustments to income and want to reduce your withholding, see the Deductions

and Adjustments Worksheet on page 2.

For accuracy,

complete all

worksheets

that apply.

● If you have more than one job or are married and you and your spouse both work and the combined earnings from all jobs

exceed $35,000 ($25,000 if married) see the Two-Earner/Two-Job Worksheet on page 2 to avoid having too little tax withheld.

● If neither of the above situations applies, stop here and enter the number from line H on line 5 of Form W-4 below. 

Cut here and give Form W-4 to your employer. Keep the top part for your records.

OMB No. 1545-0074

Form W-4 Employee’s Withholding Allowance Certificate

Department of the Treasury

Internal Revenue Service

Whether you are entitled to claim a certain number of allowances or exemption from withholding is

subject to review by the IRS. Your employer may be required to send a copy of this form to the IRS.

1 Type or print your first name and middle initial. Last name 2 Your social security number

Home address (number and street or rural route) 3 Single Married Married, but withhold at higher Single rate.

City or town, state, and ZIP code

Note. If married, but legally separated, or spouse is a nonresident alien, check the “Single” box.

5 Total number of allowances you are claiming (from line H above or from the applicable worksheet on page 2) 5

6 Additional amount, if any, you want withheld from each paycheck 6 $

7 I claim exemption from withholding for 2006, and I certify that I meet both of the following conditions for exemption.

● Last year I had a right to a refund of all federal income tax withheld because I had no tax liability and

● This year I expect a refund of all federal income tax withheld because I expect to have no tax liability.

If you meet both conditions, write “Exempt” here 7

8

Under penalties of perjury, I declare that I have examined this certificate and to the best of my knowledge and belief, it is true, correct, and complete.

Employee’s signature

(Form is not valid

unless you sign it.) Date 

Employer’s name and address (Employer: Complete lines 8 and 10 only if sending to the IRS.) Office code 9 Employer identification number (EIN)

(optional)

10

Enter “1” if you have at least $1,500 of child or dependent care expenses for which you plan to claim a credit

4 If your last name differs from that shown on your social security

card, check here. You must call 1-800-772-1213 for a new card. 

Cat. No. 10220Q

Enter “1” if you will file as head of household on your tax return (see conditions under Head of household above)

Note. You cannot claim exemption from withholding if (a) your income exceeds $850 and includes

more than $300 of unearned income (for example,

interest and dividends) and (b) another person can

claim you as a dependent on their tax return. Nonwage income. If you have a large amount of

nonwage income, such as interest or dividends, consider making estimated tax payments using Form

1040-ES, Estimated Tax for Individuals. Otherwise,

you may owe additional tax.

Recent name change? If your name on line 1

differs from that shown on your social security

card, call 1-800-772-1213 to initiate a name change

and obtain a social security card showing your correct name.

G Child Tax Credit (including additional child tax credit):

G

● If your total income will be between $55,000 and $84,000 ($82,000 and $119,000 if married), enter “1” for each eligible

child plus “1” additional if you have four or more eligible children.

● If your total income will be less than $55,000 ($82,000 if married), enter “2” for each eligible child.

(Note. Do not include child support payments. See Pub. 503, Child and Dependent Care Expenses, for details.)

Tax credits. You can take projected tax credits

into account in figuring your allowable number of

withholding allowances. Credits for child or dependent care expenses and the child tax credit may

be claimed using the Personal Allowances Worksheet below. See Pub. 919, How Do I Adjust My

Tax Withholding, for information on converting

your other credits into withholding allowances.

Nonresident alien. If you are a nonresident alien,

see the Instructions for Form 8233 before completing this Form W-4.

earner/two-job situations. Complete all worksheets

that apply. However, you may claim fewer (or zero)

allowances.

For Privacy Act and Paperwork Reduction Act Notice, see page 2. Form W-4 (2006)

2006

Page 6
Form W-4 (2006) Page 2

Deductions and Adjustments Worksheet

Note. Use this worksheet only if you plan to itemize deductions, claim certain credits, or claim adjustments to income on your 2006 tax return.

Enter an estimate of your 2006 itemized deductions. These include qualifying home mortgage interest,

charitable contributions, state and local taxes, medical expenses in excess of 7.5% of your income, and

miscellaneous deductions. (For 2006, you may have to reduce your itemized deductions if your income

is over $150,500 ($75,250 if married filing separately). See Worksheet 3 in Pub. 919 for details.)

1

1 $

$10,300 if married filing jointly or qualifying widow(er)

2 Enter: $ 7,550 if head of household 2 $

 $ 5,150 if single or married filing separately 

3 Subtract line 2 from line 1. If line 2 is greater than line 1, enter “-0-” 3 $

4 Enter an estimate of your 2006 adjustments to income, including alimony, deductible IRA contributions, and student loan interest $

5 Add lines 3 and 4 and enter the total. (Include any amount for credits from Worksheet 7 in Pub. 919) 5 $

6 Enter an estimate of your 2006 nonwage income (such as dividends or interest) 6 $

7 Subtract line 6 from line 5. Enter the result, but not less than “-0-” 7 $

8 Divide the amount on line 7 by $3,300 and enter the result here. Drop any fraction 8

9 Enter the number from the Personal Allowances Worksheet, line H, page 1 9

Add lines 8 and 9 and enter the total here. If you plan to use the Two-Earner/Two-Job Worksheet, also

enter this total on line 1 below. Otherwise, stop here and enter this total on Form W-4, line 5, page 1

10

10

Two-Earner/Two-Job Worksheet (See Two earners/two jobs on page 1.)

Note. Use this worksheet only if the instructions under line H on page 1 direct you here.

1 Enter the number from line H, page 1 (or from line 10 above if you used the Deductions and Adjustments Worksheet) 1

2 Find the number in Table 1 below that applies to the LOWEST paying job and enter it here 2

3 If line 1 is more than or equal to line 2, subtract line 2 from line 1. Enter the result here (if zero, enter

“-0-”) and on Form W-4, line 5, page 1. Do not use the rest of this worksheet 3

Note. If line 1 is less than line 2, enter “-0-” on Form W-4, line 5, page 1. Complete lines 4–9 below to calculate the additional

withholding amount necessary to avoid a year-end tax bill.

4 Enter the number from line 2 of this worksheet 4

5 Enter the number from line 1 of this worksheet 5

6 Subtract line 5 from line 4 6

7 Find the amount in Table 2 below that applies to the HIGHEST paying job and enter it here 7 $

8 Multiply line 7 by line 6 and enter the result here. This is the additional annual withholding needed 8 $

Divide line 8 by the number of pay periods remaining in 2006. For example, divide by 26 if you are paid

every two weeks and you complete this form in December 2005. Enter the result here and on Form W-4,

line 6, page 1. This is the additional amount to be withheld from each paycheck

9

9 $

Privacy Act and Paperwork Reduction Act Notice. We ask for the information on this

form to carry out the Internal Revenue laws of the United States. The Internal Revenue

Code requires this information under sections 3402(f)(2)(A) and 6109 and their

regulations. Failure to provide a properly completed form will result in your being treated

as a single person who claims no withholding allowances; providing fraudulent

information may also subject you to penalties. Routine uses of this information include

giving it to the Department of Justice for civil and criminal litigation, to cities, states, and

the District of Columbia for use in administering their tax laws, and using it in the

National Directory of New Hires. We may also disclose this information to other countries

under a tax treaty, to federal and state agencies to enforce federal nontax criminal laws,

or to federal law enforcement and intelligence agencies to combat terrorism.

The average time and expenses required to complete and file this form will vary

depending on individual circumstances. For estimated averages, see the instructions

for your income tax return.

4

Table 1: Two-Earner/Two-Job Worksheet

Married Filing Jointly All Others

If wages from LOWEST

paying job are—

If wages from HIGHEST

paying job are—

$0 - $6,000

6,001 - 12,000

12,001 - 19,000

19,001 - 26,000

26,001 - 35,000

35,001 - 50,000

50,001 - 65,000

65,001 - 80,000

80,001 - 90,000

90,001 - 120,000

120,001 and over

$0 - $42,000

Table 2: Two-Earner/Two-Job Worksheet

Married Filing Jointly All Others

If wages from HIGHEST

paying job are—

Enter on

line 7 above

If wages from HIGHEST

paying job are—

Enter on

line 7 above

$0 - $30,000

30,001 - 75,000

75,001 - 145,000

145,001 - 330,000

330,001 and over

$0 - $60,000

60,001 - 115,000

115,001 - 165,000

165,001 - 290,000

290,001 and over

$0 - $4,500

4,501 - 9,000

9,001 - 18,000

18,001 and over

Enter on

line 2 above

AND, wages from LOWEST

paying job are—

the Paperwork Reduction Act unless the form displays a valid OMB control number. Books

or records relating to a form or its instructions must be retained as long as their contents

may become material in the administration of any Internal Revenue law. Generally, tax

returns and return information are confidential, as required by Code section 6103.

Enter on

line 2 above

If wages from HIGHEST

paying job are—

32,001 - 38,000

38,001 - 46,000

46,001 - 55,000

55,001 - 60,000

60,001 - 65,000

65,001 - 75,000

75,001 - 95,000

95,001 - 105,000

105,001 - 120,000

120,001 and over

Enter on 

line 2 above

AND, wages from LOWEST

paying job are—

0

1

2

3

4

5

6

7

8

9

10

$500

830

920

1,090

1,160

6

7

8

9

10

11

12

13

14

15

0

1

2

3

0

1

2

3

4

5

$500

830

920

1,090

1,160

$42,001 and over

$42,001 and over

$0 - $4,500

4,501 - 9,000

9,001 - 18,000

18,001 - 22,000

22,001 - 26,000

26,001 - 32,000

You are not required to provide the information requested on a form that is subject to

If you have suggestions for making this form simpler, we would be happy to hear

from you. See the instructions for your income tax return.

Page 7
Figure 3. Worksheets and Tables 

Use the following worksheets and tables to figure your correct withholding and adjustments.

Use ... To ...

Worksheet 1. Project the taxable income you will have for 2006 and figure the amount of tax you will have to

Projected Tax for 2006 pay on that income.

Worksheets 1a, 1b, 1c, and 1d. Figure the amount of tax on your projected taxable income.

Tax Rate Schedule Worksheets

for 2006

Worksheet 2. Project the amount of federal income tax that you will have withheld in 2006, compare your

Projected Withholding for 2006 projected withholding with your projected tax, and determine whether the amount withheld

each payday should be adjusted.

Worksheet 3. Figure the reduced amount of your projected itemized deductions on Schedule A (Form 1040)

Itemized Deductions Limit if they are limited because your projected adjusted gross income is more than $150,500

($75,250 if married filing separately).

Worksheet 4. Figure the reduced value of your projected exemptions if your exemptions are limited because

Reduction of Exemption Amount your projected adjusted gross income for your projected filing status is more than: $150,500 if

single; $225,750 if married filing jointly or qualifying widow(er); $112,875 if married filing

separately; or $188,150 if head of household.

Worksheet 5. Figure the amount of tax when your projected 2006 taxable income includes capital gains or

Figuring Tax If You Expect To qualified dividends.

Have Capital Gains or Qualified

Dividends

Worksheet 6. Figure your projected self-employment tax for 2006 if you and/or your spouse are

Self-Employment Tax self-employed in 2006 and your own wages and self-employment income for 2006 will be

more than $94,200, or your spouse’s wages and self-employment income will be more than

$94,200.

Worksheet 7. Figure how much of an adjustment to make to line 5 of the Deductions and Adjustments

Converting Credits to Withholding Worksheet on Form W-4 to account for your projected tax credits that are not otherwise taken

Allowances into consideration.

Tables 1, 2, and 3. Determine your projected standard deduction for 2006. Do not use these tables if you plan to

2006 Standard Deduction Tables itemize your deductions.

Page 8
Worksheet 1. Projected Tax for 2006

Use this worksheet to figure the amount of your projected tax for 2006.

(Note. Enter combined amounts if married filing jointly.)

1. Enter amount of adjusted gross income (AGI) you expect in 2006. (To determine this, you may

want to start with the AGI on your last year’s return, and add or subtract your expected changes.) 1

2. If you:

• Do not plan to itemize deductions on Schedule A (Form 1040), enter the standard deduction you

expect from Table 1, 2, or 3.

• Plan to itemize deductions, and the amount on line 1 is:

• Not more than $150,500 ($75,250 if married filing separately), enter the total itemized

deductions you expect after applying any limits (such as the 7.5% limit on medical

expenses).

• More than $150,500 ($75,250 if married filing separately), use Worksheet 3 to figure the

amount to enter here .................................................... 2

3. Subtract line 2 from line 1 (if zero or less, enter -0-) .................................. 3

4. If the amount on line 1 is:

• Not more than the amount shown below for your 2006 filing status, multiply the number of

exemptions you plan to claim on your 2006 tax return by $3,300 and enter the result here.

• More than the amount shown below for your 2006 filing status, use Worksheet 4 to figure the

amount to enter here ........................................................ 4

• Single — $150,500

• Married filing jointly or Qualifying widow(er) — $225,750

• Married filing separately — $112,875

• Head of household — $188,150

5. Subtract line 4 from line 3 (if zero or less, enter -0-) .................................. 5

6. If the amount on line 1:

• Does not include capital gains or qualified dividends, use Worksheet 1a, 1b, 1c, or 1d, as

appropriate, to figure the tax to enter here.

• Includes capital gains or qualified dividends, use Worksheet 5 to figure the tax to enter here 6

7. Enter any expected additional taxes from an election to report your child’s interest and dividends

(Form 8814), and from lump-sum distributions (Form 4972) ............................ 7

8. Add lines 6 and 7 .......................................................... 8

9. Enter the amount of any expected tax credits. See Figure 2, earlier ....................... 9

10. Subtract line 9 from line 8 (if zero or less, enter -0-) .................................. 10

11. Self-employment tax. If you expect to file a joint return, figure the self-employment tax for each of

you separately and enter the total on line 11. If the projected total of your net self-employment

income multiplied by 92.35% (.9235), plus your wage income, is:

• $400 or more, but no more than $94,200, multiply your expected net self-employment income

by 92.35% (.9235), multiply that result by 15.3% (.153), and enter here.

• More than $94,200, use Worksheet 6 to figure the amount to enter here ................ 11

12. Enter any other expected taxes (such as tax on early distributions from an IRA, alternative

minimum tax, etc.) ......................................................... 12

13. Add lines 10 through 12. This is your projected tax for 2006. Enter it here and on Worksheet 2,

line 1 ................................................................... 13

Page 9
Worksheets 1a, 1b, 1c, and 1d—Tax Rate Schedule Worksheets for 2006

Worksheet 1a. For Single Filing Status

If you expect your filing status for 2006 to be single, use this worksheet to figure the amount to enter:

• On Worksheet 1, line 6, if there are no capital gains or qualified dividends included in the total on Worksheet 1, line 1, or

• On Worksheet 5, lines 28 and 30, if there are capital gains or qualified dividends included on Worksheet 1, line 1.

1. Enter the amount from Worksheet 1, line 5, or if figuring the amount to enter on Worksheet 5,

lines 28 and 30, enter the amount from Worksheet 5, line 1 or 14, as appropriate ........... 1

2. Enter whichever of the amounts in column A below is closer to, but not more than, the amount

you entered on line 1 above ................................................. 2

Column A Column B Column C

$ 0 10% (.10) $ 0.00

7,550 15% (.15) 755.00

30,650 25% (.25) 4,220.00

74,200 28% (.28) 15,107.50

154,800 33% (.33) 37,675.50

336,550 35% (.35) 97,653.00

3. Subtract line 2 from line 1 .................................................. 3

4. Enter the percentage from column B above that corresponds to the amount from column A that

you entered on line 2 ...................................................... 4 .

5. Multiply line 3 by line 4 .................................................... 5

6. Enter the amount from column C above that corresponds to the amount from column A that you

entered on line 2 ......................................................... 6

7. Add lines 5 and 6 and enter the result here and on Worksheet 1, line 6, or on Worksheet 5, line

28 or 30, whichever is appropriate ............................................ 7

Worksheet 1b. For Head of Household Filing Status

If you expect your filing status for 2006 to be head of household, use this worksheet to figure the amount to enter:

• On Worksheet 1, line 6, if there are no capital gains or qualified dividends included in the total on Worksheet 1, line 1, or

• On Worksheet 5, lines 28 and 30, if there are capital gains or qualified dividends included on Worksheet 1, line 1.

1. Enter the amount from Worksheet 1, line 5, or if figuring the amount to enter on Worksheet 5,

lines 28 and 30, enter the amount from Worksheet 5, line 1 or 14, as appropriate .......... 1

2. Enter whichever of the amounts in column A below is closer to, but not more than, the amount

you entered on line 1 above ................................................ 2

Column A Column B Column C

$ 0 10% (.10) $ 0.00

10,750 15% (.15) 1,075.00

41,050 25% (.25) 5,620.00

106,000 28% (.28) 21,857.50

171,650 33% (.33) 40,239.50

336,550 35% (.35) 94,656.50

3. Subtract line 2 from line 1 ................................................. 3

4. Enter the percentage from column B above that corresponds to the amount from column A that

you entered on line 2 ..................................................... 4 .

5. Multiply line 3 by line 4 ................................................... 5

6. Enter the amount from column C above that corresponds to the amount from column A that you

entered on line 2 ........................................................ 6

7. Add lines 5 and 6 and enter the result here and on Worksheet 1, line 6, or on Worksheet 5, line

28 or 30, whichever is appropriate ........................................... 7

Page 10
Worksheet 1c. For Married Filing Jointly or Qualifying Widow(er) Filing Status

If you expect your filing status for 2006 to be married filing jointly or qualifying widow(er), use this worksheet to figure the

amount to enter:

• On Worksheet 1, line 6, if there are no capital gains or qualified dividends included in the total on Worksheet 1, line 1, or

• On Worksheet 5, lines 28 and 30, if there are capital gains or qualified dividends included on Worksheet 1, line 1.

1. Enter the amount from Worksheet 1, line 5, or if figuring the amount to enter on Worksheet 5,

lines 28 and 30, enter the amount from Worksheet 5, line 1 or 14, as appropriate ........... 1

2. Enter whichever of the amounts in column A below is closer to, but not more than, the amount

you entered on line 1 above ................................................. 2

Column A Column B Column C

$ 0 10% (.10) $ 0.00

15,100 15% (.15) 1,510.00

61,300 25% (.25) 8,440.00

123,700 28% (.28) 24,040.00

188,450 33% (.33) 42,170.00

336,550 35% (.35) 91,043.00

3. Subtract line 2 from line 1 .................................................. 3

4. Enter the percentage from column B above that corresponds to the amount from column A that

you entered on line 2 ...................................................... 4 .

5. Multiply line 3 by line 4 .................................................... 5

6. Enter the amount from column C above that corresponds to the amount from column A that you

entered on line 2 ......................................................... 6

7. Add lines 5 and 6 and enter the result here and on Worksheet 1, line 6, or on Worksheet 5, line

28 or 30, whichever is appropriate ............................................ 7

Worksheet 1d. For Married Filing Separately Filing Status

If you expect your filing status for 2006 to be married filing separately, use this worksheet to figure the amount to enter:

• On Worksheet 1, line 6, if there are no capital gains or qualified dividends included in the total on Worksheet 1, line 1, or

• On Worksheet 5, lines 28 and 30, if there are capital gains or qualified dividends included on Worksheet 1, line 1.

1. Enter the amount from Worksheet 1, line 5, or if figuring the amount to enter on Worksheet 5,

lines 28 and 30, enter the amount from Worksheet 5, line 1 or 14, as appropriate ........... 1

2. Enter whichever of the amounts in column A below is closer to, but not more than, the amount

you entered on line 1 above ................................................. 2

Column A Column B Column C

$ 0 10% (.10) $ 0.00

7,550 15% (.15) 755.00

30,650 25% (.25) 4,220.00

61,850 28% (.28) 12,020.00

94,225 33% (.33) 21,085.00

168,275 35% (.35) 45,521.50

3. Subtract line 2 from line 1 .................................................. 3

4. Enter the percentage from column B above that corresponds to the amount from column A that

you entered on line 2 ...................................................... 4 .

5. Multiply line 3 by line 4 .................................................... 5

6. Enter the amount from column C above that corresponds to the amount from column A that you

entered on line 2 ......................................................... 6

7. Add lines 5 and 6 and enter the result here and on Worksheet 1, line 6, or on Worksheet 5, line

28 or 30, whichever is appropriate ............................................ 7

Page 11
Worksheet 2. Projected Withholding for 2006

Use this worksheet to figure the amount of your projected withholding for 2006, compare it to your projected tax for 2006, and

figure an additional amount to have withheld each payday, if necessary.

Note. Enter combined amounts if married filing jointly.

1. Enter your projected tax for 2006 from Worksheet 1, line 13 ........................... 1

2. Enter your total federal income tax withheld to date in 2006 from all sources of income. (For

wages, you should be able to find the withholding-to-date on your last pay slip or statement.) . . . . 2

3. Enter the federal tax withholding you expect for the rest of 2006:

a. For each source of wages, multiply the amount of federal income tax now being withheld each

payday by the number of paydays remaining in the year and enter the combined amount for

all jobs ............................................................... 3a

b. For all other sources of recurring taxable income, multiply the withholding amount by the

remaining number of times the income is expected. For example, if you have federal income

tax withheld from your monthly pension and you will receive nine more payments this year,

multiply your monthly withholding amount by 9 .................................. 3b

4. Add lines 2 and 3. This is your projected withholding for 2006 ......................... 4

5. Compare the amounts on lines 1 and 4. If:

• Line 1 is more than line 4, subtract line 4 from line 1. Enter the result here and go to line 6.

• Line 4 is more than line 1, stop here and see How Do I Decrease My Withholding? ....... 5

6. Divide line 5 by the number of paydays (or other withholding events) remaining in 2006 and enter

the result. This is the additional amount you should have withheld from each remaining

payment. Enter this amount on Form W-4, line 6 .................................... 6

Page 12
Worksheet 3. Itemized Deductions Limit

Use this worksheet to figure the amount to enter on Worksheet 1, line 2, and on the Form W-4 Deductions and Adjustments

Worksheet, line 1.

1. Enter the total itemized deductions you expect for 2006 after applying any limits (such as the

7.5% limit on medical expenses) ............................................ 1

2. Enter the amount included in line 1 for medical and dental expenses, investment interest,

casualty and theft losses, and gambling losses .................................. 2

3. Subtract line 2 from line 1 ................................................. 3

Note. If the amount on line 3 is zero, stop here and enter on Worksheet 1, line 2, the larger of

the amount from line 1 of this worksheet or your standard deduction from Table 1, 2, or 3.

4. Multiply the amount on line 3 by 80% (.80) and enter the result as a decimal ............. 4 .

5. Enter the amount from Worksheet 1, line 1 ..................................... 5

6. Enter $150,500 ($75,250 if married filing separately) .............................. 6

7. Subtract line 6 from line 5 ................................................. 7

Note. If the amount on line 7 is zero or less, stop here and enter on Worksheet 1, line 2, the

larger of the amount from line 1 of this worksheet or your standard deduction from Table 1, 2,

or 3.

8. Multiply the amount on line 7 by 3% (.03) and enter the result as a decimal .............. 8 .

9. Enter the smaller of line 4 or line 8 ........................................... 9

10. Divide line 9 by 3.0 and enter the result as a decimal .............................. 10 .

11. Subtract line 10 from line 9 ................................................ 11

12. Subtract line 11 from line 1. Enter the result here, on line 2 of Worksheet 1, and on line 1 of

the Form W-4 Deductions and Adjustments Worksheet ............................ 12

Worksheet 4. Reduction of Exemption Amount

Use this worksheet to figure the amount to enter on Worksheet 1, line 4.

1. Multiply $3,300 by the number of exemptions you plan to claim ...................... 1

2. Enter the amount from Worksheet 1, line 1 .................................... 2

3. Enter:

$150,500 if single

$225,750 if married filing jointly or qualifying widow(er)

$112,875 if married filing separately

$188,150 if head of household ........................................... 3

4. Subtract line 3 from line 2 and enter here ..................................... 4

5. Is line 4 more than $122,500 (more than $61,250 if married filing separately)? ...........

Yes. Multiply $1,100 by the number of exemptions you plan to claim and enter the result

here and on Worksheet 1, line 4. Do not complete the rest of this worksheet.

No. Divide line 4 by $2,500 ($1,250 if married filing separately). If the result is not a whole

number, increase it to the next whole number. 5

6. Multiply line 5 by 2% (.02). Enter the result as a decimal, but not more than 1.0 .......... 6 .

7. Multiply line 1 by the decimal on line 6 ........................................ 7

8. Divide line 7 by 1.5 ..................................................... 8

9. Subtract line 8 from line 1. Enter the result here and on Worksheet 1, line 4 ............. 9

Page 13
Worksheet 5. Figuring Tax If You Expect To Have Capital Gains or Qualified Dividends

Use this worksheet to figure the amount to enter on Worksheet 1, line 6, only if the amount on line 1 of that worksheet

includes capital gains or qualified dividends.

1. Enter the amount from Worksheet 1, line 5 .................... 1.

2. Enter your expected qualified dividends for 2006 ................ 2.

3. Enter the net capital gain expected for 2006 ................... 3.

4. Add lines 2 and 3 ....................................... 4.

5. Enter your 28% rate gain or loss expected for 2006 .............. 5.

6. Enter the unrecaptured section 1250 gain expected for 2006 ....... 6.

7. Add lines 5 and 6 ....................................... 7.

8. Enter the smaller of line 3 or line 7 .......................... 8.

9. Subtract line 8 from line 4 ................................. 9.

10. Subtract line 9 from line 1. If zero or less, enter -0- .............. 10.

11. Enter the smaller of line 1 or $61,300 ($30,650 if single or married

filing separately; $41,050 if head of household) ................. 11.

12. Enter the smaller of line 10 or line 11 ........................ 12.

13. Subtract line 4 from line 1. If zero or less, enter -0- .............. 13.

14. Enter the larger of line 12 or line 13. If line 11 and line 12 are the

same, skip lines 15 and 16 and go on to line 17 ................. 14.

15. Subtract line 12 from line 11 ............................... 15.

16. Multiply line 15 by 5% (.05). If lines 1 and 11 are the same, skip lines

17–27 and go to line 28 .................................. 16.

17. Enter the smaller of line 1 or line 9 .......................... 17.

18. Subtract line 15 from line 17. If zero or less, enter -0- ............ 18.

19. Multiply line 18 by 15% (.15). If line 6 is zero or blank, skip lines

20–24 and go to line 25 .................................. 19.

20. Enter the smaller of line 3 or line 6 .......................... 20.

21. Add lines 4 and 14 ...................................... 21.

22. Subtract line 1 from line 21. If zero or less, enter -0- ............. 22.

23. Subtract line 22 from line 20. If zero or less, enter -0- ............ 23.

24. Multiply line 23 by 25% (.25). If line 5 is zero or blank, skip lines

25–27 and go to line 28 .................................. 24.

25. Add lines 14, 15, 18, and 23 ............................... 25.

26. Subtract line 25 from line 1 ................................ 26.

27. Multiply line 26 by 28% (.28) ................................................. 27.

28. Tax on the amount on line 14 from the 2006 Tax Rate Schedules ..................... 28.

29. Add lines 16, 19, 24, 27, and 28 .............................................. 29.

30. Tax on the amount on line 1 from the 2006 Tax Rate Schedules ...................... 30.

31. Tax. Enter the smaller of line 29 or line 30 here and on Worksheet 1, line 6 .............. 31.

Page 14
Worksheet 6. Self-Employment Tax

Use this worksheet to figure the amount to enter on Worksheet 1, line 11. If you are married filing a joint return and

you are both self-employed, complete this worksheet separately for each spouse, and combine the amounts on

Worksheet 1, line 11.

1. Enter expected self-employment income for 2006 ............................ 1

2. Multiply the amount on line 1 by 92.35% (.9235) ............................. 2

3. Multiply the amount on line 2 by 2.9% (.029) ............................... 3

4. Social security tax maximum income ..................................... 4 $94,200

5. Enter estimated wages for 2006 ......................................... 5

6. Subtract line 5 from line 4 .............................................. 6

Note. If line 6 is zero or less, stop here and enter the amount from line 3 on

Worksheet 1, line 11.

7. Enter the smaller of line 2 or line 6 ....................................... 7

8. Multiply the amount on line 7 by 12.4% (.124)............................... 8

9. Add line 3 and line 8. Enter the result here and on Worksheet 1, line 11. If you expect

to file a joint return, combine the result with your spouse’s expected self-employment

tax and enter the total on Worksheet 1, line 11 .............................. 9

Page 15
Worksheet 7. Converting Credits to Withholding Allowances

Use this worksheet to figure an additional amount to enter on the Form W-4 Deductions and Allowances Worksheet, line 5. 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.) ............................. 1

2. Credit for the elderly or the disabled .................................................... 2

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

4. Education credits ................................................................. 4

5. Adoption credit .................................................................. 5

6. Foreign tax credit ................................................................. 6

7. Retirement savings contributions credit .................................................. 7

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) ............... 8

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

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

11. Enter the appropriate number from one of the following credit tables. Use the table that 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.

Married Filing Joint Head of Household Returns or Qualifying Widow(er)

If combined Multiply If combined Multiply

income from credits income from credits

all sources by: all sources by:

is: is:

$0 - $36,000 10.0 $0 - $25,000 10.0

36,001 - 82,000 6.7 25,001 - 55,000 6.7

82,001 - 150,000 4.0 55,001 - 125,000 4.0

150,001 - 220,000 3.6 125,001 - 190,000 3.6

220,001 - 360,000 3.0 190,001 - 355,000 3.0

360,001 and over — 2.8 355,001 and over — 2.8

Single Married Filing Separately

If combined Multiply If combined Multiply

income from credits income from credits

all sources by: all sources by:

is: is:

$0 - $16,000 10.0 $0 - $18,000 10.0

16,001 - 39,000 6.7 18,001 - 41,000 6.7

39,001 - 85,000 4.0 41,001 - 75,000 4.0

85,001 - 170,000 3.6 75,001 - 110,000 3.6

170,001 - 350,000 3.0 110,001 - 180,000 3.0

350,001 and over — 2.8 180,001 and over — 2.8 11

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 ......................................................... 12

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.

Page 16
2006 Standard Deduction Tables Table 3. Standard Deduction Worksheet for

Dependents

If you are married filling a separate return and Use this worksheet only if someone else can

your spouse itemizes deductions, or if you are a claim an exemption for you (or your spouse if

married filing jointly). CAUTION dual-status alien, you cannot take the standard

!

deduction even if you were born before January 2, 1942, or If you were born before January 2, 1942, or you are blind, you are blind. check the correct number of boxes below. Then go to the

worksheet.

Table 1. Standard Deduction Chart for Most Born before People* You January 2, 1942 Blind 

THEN your

standard Your spouse, if claiming Born before IF your filing status is... deduction is... spouse’s exemption January 2, 1942 Blind 

Single or Married filing separately $ 5,150

Married filing jointly or Qualifying

widow(er) with dependent child 10,300 Total number of boxes you checked

Head of household 7,550 1. Enter your earned income (defined

* Do not use this chart if you were born before January 2, 1942, or you are blind, below). If none, enter -0-. 1.

or if someone else can claim an exemption for you (or your spouse if married

filing jointly). Use Table 2 or 3 instead. 2. Additional amount 2. $300

3. Add lines 1 and 2. 3.

4. Minimum standard deduction. 4. $850

5. Enter the larger of line 3 or line 4. 5. Table 2. Standard Deduction Chart for

People Born Before January 2, 6. Enter the amount shown below for your

1942, or Who are Blind* filing status.

• Single or Married filing separately— Check the correct number of boxes below. Then go to the $5,150 6. chart.

Born before • Married filing jointly or Qualifying You January 2, 1942 Blind widow(er) with dependent child—

$10,300

Your spouse, if claiming Born before • Head of household—$7,550

spouse’s exemption January 2, 1942 Blind 

7. Standard deduction.

a. Enter the smaller of line 5 or line 6. Total number of boxes you checked If born after January 1, 1942, and

THEN your not blind, stop here. This is your

AND the number standard standard deduction. Otherwise, go

on to line 7b. 7a. IF your in the box above deduction

filing status is... is... is... b. If born before January 2, 1942, or

Single 1 $ 6,400 blind, multiply $1,250 ($1,000 if

married or qualifying widow(er) with 2 7,650 dependent child) by the number in

Married filing jointly or 1 11,300 the box above. 7b.

Qualifying widow(er) 2 12,300 c. Add lines 7a and 7b. This is your with dependent child 3 13,300 standard deduction for 2006. 7c.

4 14,300

Married filing 1 6,150 Earned income includes wages, salaries, tips,

separately 2 7,150 professional fees, and other compensation received for

3 8,150 personal services you performed. It also includes any

4 9,150 amount received as a scholarship that you must

include in your income. Head of household 1 8,800

2 10,050

* If someone can claim an exemption for you (or your spouse if married filing

jointly), use Table 3, instead.

Page 17
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topics. It also describes other free tax information services, weeks from the date you filed your return (3 weeks

including tax education and assistance programs and a list if you filed electronically). Have your 2005 tax reof TeleTax topics. turn available because you will need to know your

social security number, your filing status, and the Internet. You can access the IRS website 24 exact whole dollar amount of your refund. hours a day, 7 days a week, at www.irs.gov to:

Evaluating the quality of our telephone services. To

ensure that IRS representatives give accurate, courteous, • E-file your return. Find out about commercial tax and professional answers, we use several methods to preparation and e-file services available free to eli- evaluate the quality of our telephone services. One method gible taxpayers. is for a second IRS representative to sometimes listen in • Check the status of your 2005 refund. Click on on or record telephone calls. Another is to ask some callers Where’s My Refund. Be sure to wait at least 6 to complete a short survey at the end of the call. weeks from the date you filed your return (3 weeks Walk-in. Many products and services are avail- if you filed electronically). Have your 2005 tax re- able on a walk-in basis. turn available because you will need to know your

social security number, your filing status, and the

exact whole dollar amount of your refund.

• Products. You can walk in to many post offices, • Download forms, instructions, and publications. libraries, and IRS offices to pick up certain forms, • Order IRS products online. instructions, and publications. Some IRS offices, • Research your tax questions online. libraries, grocery stores, copy centers, city and • Search publications online by topic or keyword. county government offices, credit unions, and office

• View Internal Revenue Bulletins (IRBs) published in supply stores have a collection of products availthe last few years. able to print from a CD-ROM or photocopy from

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reproducible proofs. Also, some IRS offices and • Current-year forms, instructions, and publications.

libraries have the Internal Revenue Code, regula- • Prior-year forms, instructions, and publications. tions, Internal Revenue Bulletins, and Cumulative • Tax Map: an electronic research tool and finding Bulletins available for research purposes. aid. • Services. You can walk in to your local Taxpayer • Tax law frequently asked questions (FAQs). Assistance Center every business day for personal, • Tax Topics from the IRS telephone response sys- face-to-face tax help. An employee can explain IRS tem. letters, request adjustments to your tax account, or

help you set up a payment plan. If you need to • Fill-in, print, and save features for most tax forms.

resolve a tax problem, have questions about how • Internal Revenue Bulletins.

the tax law applies to your individual tax return, or • Toll-free and email technical support. you’re more comfortable talking with someone in Buy the CD-ROM from National Technical Information person, visit your local Taxpayer Assistance Center Service (NTIS) at www.irs.gov/cdorders for $25 (no han- where you can spread out your records and talk dling fee) or call 1-877-233-6767 toll free to buy the with an IRS representative face-to-face. No ap- CD-ROM for $25 (plus a $5 handling fee). pointment is necessary, but if you prefer, you can CD-ROM for small businesses. Publication call your local Center and leave a message re- 3207, The Small Business Resource Guide questing an appointment to resolve a tax account CD-ROM for 2005, has a new look and en- issue. A representative will call you back within 2 hanced navigation features. This year’s CD includes: business days to schedule an in-person appointment at your convenience. To find the number, go • Helpful information, such as how to prepare a busito www.irs.gov/localcontacts or look in the phone ness plan, find financing for your business, and

book under United States Government, Internal much more.

Revenue Service. • All the business tax forms, instructions, and publications needed to successfully manage a business. Mail. You can send your order for forms, instruc- • Tax law changes for 2005. tions, and publications to the address below and

receive a response within 10 business days after • IRS Tax Map to help you find forms, instructions,

your request is received. and publications by searching on a keyword or

topic.

National Distribution Center • Web links to various government agencies, busi- P.O. Box 8903 ness associations, and IRS organizations.

Bloomington, IL 61702-8903 • “Rate the Product” survey—your opportunity to

CD-ROM for tax products. You can order Pub- suggest changes for future editions.

lication 1796, IRS Tax Products CD-ROM, and An updated version of this CD is available each year in

obtain: early April. You can get a free copy by calling

1-800-829-3676 or by visiting www.irs.gov/smallbiz.

• A CD that is released twice so you have the latest

products. The first release ships in late December

and the final release ships in late February.

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