Question 3 of 5. Julie anticipates receiving a $500 credit for other dependents on her 2021 tax return. If she is not looking for a huge tax refund, how should Julie treat the credit when completing her 2021 Form W-4? O Julie should complete Step 2 on her 2021 Form W-4 and use the Multiple Jobs Worksheet to calculate her adjustment. Julie should complete Step 3 of her 2021 Form W-4. O Julie should use Step 4, Other Adjustments, on the 2021 Form W-4. She should enter the $500 of anticipated credit as a deduction on line 4b. O Julie should use Step 4, Other Adjustments, on the 2021 Form W-4 and enter the credit as a negative amount on line 4a, Other Income (not from jobs). Reducing her taxable income in this way will be virtually the same as applying the credit to her income.
Question 3 of 5. Julie anticipates receiving a $500 credit for other dependents on her 2021 tax return. If she is not looking for a huge tax refund, how should Julie treat the credit when completing her 2021 Form W-4? O Julie should complete Step 2 on her 2021 Form W-4 and use the Multiple Jobs Worksheet to calculate her adjustment. Julie should complete Step 3 of her 2021 Form W-4. O Julie should use Step 4, Other Adjustments, on the 2021 Form W-4. She should enter the $500 of anticipated credit as a deduction on line 4b. O Julie should use Step 4, Other Adjustments, on the 2021 Form W-4 and enter the credit as a negative amount on line 4a, Other Income (not from jobs). Reducing her taxable income in this way will be virtually the same as applying the credit to her income.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Question 3 of 5.
Julie anticipates receiving a $500 credit for other dependents on her 2021 tax return. If she is not looking for a huge tax
refund, how should Julie treat the credit when completing her 2021 Form W-4?
Julie should complete Step 2 on her 2021 Form W-4 and use the Multiple Jobs Worksheet to calculate her adjustment.
O Julie should complete Step 3 of her 2021 Form W-4.
O Julie should use Step 4, Other Adjustments, on the 2021 Form W-4. She should enter the $500 of anticipated credit as a
deduction on line 4b.
O Julie should use Step 4, Other Adjustments, on the 2021 Form W-4 and enter the credit as a negative amount on line 4a,
Other Income (not from jobs). Reducing her taxable income in this way will be virtually the same as applying the credit to her
income.
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