What is the Arizona A-4 form?
The Arizona A-4 form is an Employee’s Arizona Withholding Percentage Election form. It allows employees to choose the percentage of their gross taxable wages that will be withheld for Arizona state income tax. This form is essential for ensuring that the correct amount of tax is withheld from each paycheck based on the employee's individual tax situation.
Who needs to fill out the Arizona A-4 form?
New employees must complete the Arizona A-4 form within the first five days of employment to select their withholding percentage. Current employees may also fill out the form if they wish to change their withholding amount. If the form is not submitted, the employer will automatically withhold 2.7% of gross taxable wages.
What are "gross taxable wages"?
Gross taxable wages refer to the total wages reported in box 1 of your federal Form W-2. This amount is your gross wages minus any pretax deductions, such as health insurance premiums. Understanding this term is crucial, as the withholding percentage is applied to these wages.
Can I elect a withholding percentage of zero?
Yes, you can elect a withholding percentage of zero if you expect to have no Arizona income tax liability for the current year. However, choosing zero withholding does not exempt you from paying any taxes due when you file your Arizona income tax return. If your tax situation changes during the year, you should submit a new A-4 form to select a different withholding percentage.
What should I do with the completed A-4 form?
Once you have filled out the A-4 form, submit it to your employer. They will use the information provided to adjust the amount of state income tax withheld from your paychecks. It is important to keep a copy for your records.
What happens if I do not submit the A-4 form?
If you do not submit the A-4 form, your employer is required to withhold 2.7% of your gross taxable wages. This could result in a higher withholding amount than necessary, depending on your actual tax liability.
Can nonresident employees use the Arizona A-4 form?
Yes, nonresident employees who earn compensation while working in Arizona may also use the Arizona A-4 form. They can elect to have Arizona income taxes withheld from their wages, depending on their individual circumstances. It is important for nonresidents to assess their tax liability before making this election.
What if my tax situation changes during the year?
If your tax situation changes and you expect to have a tax liability, you should promptly fill out a new A-4 form. This will allow you to adjust your withholding percentage to better match your expected tax obligation for the remainder of the year.
How does the withholding affect my tax return?
The amount withheld from your paycheck is applied to your Arizona income tax due when you file your tax return. If too much tax is withheld, you may receive a refund. Conversely, if too little is withheld, you may owe additional taxes when you file your return. It is important to choose an appropriate withholding percentage to avoid surprises at tax time.