Question

the special withholding allowance may be claimed only by those employees who do notvitrmize deductions on their income tax returns.T/F?

Answer 1

The given statement is false.

An employee can claim special withholding allowance whether or not he plans to itemise deductions on his tax return.

The special withholding allowance can be claimed only if :-

1. employee - single and one job at a time.

2. employee - married and one job at a time. ( spouse does not work )

3. employee - two jobs at one time but only one job pays more than $ 1000 or

4. employee - married and both spouses work but only one job pays more than $ 1000 .