What is the purpose of form W-4 and where can I obtain this form?

You must complete form W-4 so Yale University can withhold the correct amount of federal income tax from your pay. W-4 forms may be obtained from the Payroll Department or at www.irs.gov.

How do I figure the number of allowances I should claim on form W-4?

Complete Personal Allowances Worksheet on page one of Form W-4. You may also need to complete Deductions and Adjustments Worksheet and Two-Earner/Two-Job Worksheet on page 2 if applicable. Please refer to IRS Publication 919, “How Do I Adjust My Tax Withholding” for information on converting your other credits to allowances. This publication is located at www.irs.gov. Also, please note: If any forms W-4 are completed with an excess of 10 allowances, these forms must be sent to the Internal Revenue Service for their review.

May I have an additional amount withheld for federal income tax?

Yes, you may have an additional amount withheld for federal income tax. Complete line 6 of the form W-4 with this amount. Please note that this amount will be the total additional amount withheld from each paycheck.

What is exemption from Federal Withholding and who is eligible?

Claiming an exemption from federal withholding means that Yale University will not withhold federal taxes from your check for the Calendar Year denoted on form W-4.

You must meet and certify both of the following conditions for exemptions:

• Last year you had a right to a refund of all federal income tax withheld because you had no tax liability.
• This year you expect a refund of all federal income tax withheld because you expect to have no tax liability.

Also, you may not claim exemption for withholding if:

• Your income exceeds $800.00 and includes more than $250.00 of unearned income (i.e. interest or dividends) and:
• Another person can claim you as a dependent on their tax return.

Please note: Your exemption from federal withholding taxes expires every February 15^th. In order to continue your exemption, a new form W-4 must be completed prior to that date each calendar year.

I am a non-resident alien for tax purposes, how should I complete form W-4?

Do not complete form W-4 before meeting with Yale University Tax Department. Please call the Yale University Tax Department at 432-5597 to schedule an appointment. 

What happens to my taxes if I do not complete form W-4?

If the Payroll Department does not have a valid W-4 on file at the time a payroll payment is processed, taxes will be withheld at the default tax, which is Single marital status with no allowances. This will withhold the maximum taxes from your payment.

Can my taxes be refunded if my W-4 form is not in the Payroll Department in time and maximum taxes are withheld?

No, taxes cannot be refunded for late submission of form W-4. The University is obligated to withhold taxes based on valid forms filed on the date of payment processing. The amount of withholding will be included in your year to date federal withholdings reported on form W-2 (Employee’s Statement of Earnings) issued for the calendar year.

What is the purpose of form CTW-4 and where can I obtain this form?

You must complete form CTW-4 so Yale University can deduct the correct amount of Connecticut State income tax from your check. CTW-4 forms may be obtained at the Payroll Department or at www.drs.state.ct.us.gov.

How do I determine my filing status for Connecticut State withholding?

You may determine your filing status for State withholding taxes by completing the FILING STATUS WORKSHEET on Form CTW-4.

Can I have the Connecticut State taxes withheld increased or decreased by a specific dollar amount?

Yes, for an additional amount to be withheld, please complete line 2 on form CTW-4. For a reduced amount, please complete line 3 of form CTW-4. Please note that this amount will be the total additional or reduced amount withheld from each paycheck.

What is exemption from Connecticut withholding and who is eligible?

Claiming an exemption from Connecticut State withholding means that Yale University will not withhold Connecticut taxes from your check for the Calendar Year denoted on form CTW-4. You are exempt from Connecticut withholding if you expect to have no Connecticut income tax liability for the taxable calendar year.

You will have no Connecticut income tax liability if your gross income for the taxable calendar year is:

• $12,000 or less and you will file as Married Filing Separately on your federal income tax return;
• $19,000 or less and you will file as Head of Household on your federal income tax return;
• $24,000 or less and you will file Married Filing Jointly on your federal income tax return; or
• $12,625 or less and you will file as Single on your federal income tax return.

All forms claiming exempt from Connecticut State withholding are sent to the State of Connecticut, Department of Revenue Services for their review.

Please note: Your exemption from Connecticut withholding taxes expires every February 15^th. In order to continue your exemption, a new form CTW-4 must be completed prior to that date each calendar year.

What happens if I do not complete form CTW-4?

If the Payroll Department does not have a valid CTW-4 on file at the time a payroll payment is processed, taxes will be withheld at the default tax, which is a flat 4.5% of your taxable income.

Can my taxes be refunded if my CT W-4 form is not in the Payroll Department in time and maximum taxes are withheld?

No, taxes cannot be refunded for late submission of formCTW-4. The University is obligated to withhold taxes based on valid forms filed on the date of payment processing. The amount of Connecticut withholding will be included in your year to date state withholdings reported on form W-2 (Employee’s Statement of Earnings) issued for the calendar year.

What is the purpose of form W-5?

You must complete federal form W-5 in order to receive any advance payment of earned income credit. (EITC) Please see “What is EITC?” below.

What is Earned Income Tax Credit (EITC) and who is eligible?

EITC is a tax credit for certain individuals. The advance EITC allows certain taxpayers to receive their earned income tax credit in installments throughout the year instead of a lump sum during the following filing season.  Those who expect to qualify for advance EITC can register in January. The credit will appear in each paycheck, equally dispersed throughout the year. 

Taxpayers who expect to qualify for advance EITC must expect:

• Their 2005 income will be below 30,338.00( 31,338.00 if filing jointly.
• To have at least one qualifying child; and
• To qualify for the EITC

Taxpayers who want to receive advance EITC payments must complete Form W-5, Earned Income Credit Advance Payment Certificate, give the bottom to the Payroll Department and keep the top portion for their records.  With this authorization,

I believe I am eligible for advance income credit payments, what should I do?

Complete form W-5 (which can be obtained at the Payroll Department, or at www.irs.gov.) and return to the Payroll Department.

Can the Payroll Department provide tax advice for employees completing tax forms?

No, Yale University cannot provide individual tax advice. There is a vast amount of information on both the IRS website: www.irs.gov and the State of Connecticut website: www.drs.state.ct.us. The State of Connecticut Department of Revenue services can also be reached by telephone at 1-800-382-9463 from 8:00am to 5:00pm, Monday through Friday.