Arch gives you an amended Form W-4 dated March 9,2018 on which he claims two additional withholding allowances.He asks you to refund the excess taxes that were deducted from January 1 to March 9 when Arch claimed only one withholding allowance.You should:

Question

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The correct choice is to inform Arch that you are unable to repay the overwithheld taxes that were withheld before March 9 and that the adjustment will have to be made when he files his annual income tax return. The reason for this is that the excess taxes were withheld under the previous W-4 form and there was no indication at that time that Arch was entitled to more withholdings. As a result, the overwithheld taxes cannot be repaid until the end of the year when Arch files his tax return and claims the additional allowances. It is important to be transparent with Arch about this process to avoid any confusion or misunderstandings.

Arch Gives You an Amended Form W-4 Dated March 9,2018