IRS Form W-4V Voluntary Withholding Request

What Is Form W-4V Used For?

Complete and file the W-4V Form with the entity that handles government payments and pays you regularly if you need them to deduct income tax on a federal level before these payments even reach you. Unlike taxes individuals are obliged to pay upon receiving wages and salaries, you have an opportunity to request the payer deal with this matter for you. The source of the income covered in this form is a government organization or unit, and you are free to choose the deduction rate that suits you unless your objective is to receive unemployment benefits which means the rate is fixed.

While the preparation and submission of Form W-4V is completely voluntary, you may opt to do that if you prefer the payer to deduct the necessary amount of tax instead of doing it yourself through tax payments you are obliged to deal with every quarter. You should reach out to the payer first if you are not sure the payment in question qualifies for voluntary deduction. If you do not ask the payer to deduct tax in this manner, they will not be able to do so on your behalf which is why it is crucial to give them this request. In some instances, payers have their own equivalent forms they ask the recipient of the funds to fill out instead which is allowed but you do not have to comply with this requirement since a formal instrument released by tax authorities will accomplish the same goal.

Form W-4V Instructions

Here is how you are supposed to fill out IRS Form W-4V:

1. Identify yourself - indicate your full name, social security number, and mailing address . It is possible you currently reside abroad - make sure you include the full address and the name of the country you live in at the moment. Specify your claim or add the number assigned to you by the payer to facilitate your communication - sometimes, the number is your own social security number or the combination specifically given to you in a formal letter sent by the payer. In case you are not sure what to write in this field, contact the payer so that the form contains no mistakes.

2. Check the box if you want the payer to deduct tax from the compensation for unemployment with every payment being 10% lower . Read the list of various government payments, and if any of them are applicable in your case, point out the rate of deduction you consider appropriate - the choice is up to you. Alternatively, the form can be used to ask the payer to stop applying the deductions to your payments.

3. Certify the documentation by signing and dating it . When the form is ready, carefully cut it from the instructions included in the top half of the page and only provide the payer with the part you have completed. Remember you are responsible for recording true and accurate information in this request otherwise you will be subject to a penalty.

Where to Mail Form W-4V?

W-4V Form and the majority of documents of this kind are released by fiscal organizations yet you do not have to provide any information to the IRS regarding your request for tax deduction. Once you signed the paperwork, mail it to the payer - it may be a government unit or corporation. Note that if the request covers social security benefits, you must furnish a copy of the document to the local office of the Social Security Administration. It is advised to visit the payer in person or make a phone call so that the representative lets you know when the deduction will apply - it will remain valid until you determine this arrangement no longer works for you or the payments stop in accordance with the law.

IRS W-4V Related Forms:

• IRS Form W-4, Employee's Withholding Allowance Certificate is a document completed by employees to let the employer know how much money to withhold from their paychecks for federal taxes;
• IRS Form W-4P, Withholding Certificate for Pension or Annuity Payments is a document used by U.S. citizens, resident aliens, and their estates who receive annuities, pensions, and other deferred compensation to inform payers of the accurate amount of federal income tax to be withheld from the payments. Usually, federal income tax withholding applies to the taxable payments made from profit-sharing, annuity, pension, stock bonus, commercial annuities, and deferred compensation plans;
• IRS Form W-4S, Request for Federal Income Tax Withholding from Sick Pay is a document the employee needs to give to the third-party payer of the sick pay, for example, an insurance company if the employee wishes federal income tax withheld from the payments.