Management Package Estate Withholding
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FAQ
US law requires that the transferee (buyer) on a sale or disposition of a United States Real Property Interest withhold a percentage (typically 15%) of the total amount realized (the sales price) at the time of disposition (closing of sale).
Claiming 0 Allowances on your W4 ensures the maximum amount of taxes are withheld from each paycheck. Plus, you'll most likely get a refund back at tax time.
Claiming 1 reduces the amount of taxes that are withheld from weekly paychecks, so you get more money now with a smaller refund. Claiming 0 allowances may be a better option if you'd rather receive a larger lump sum of money in the form of your tax refund.
W1 ? Total salary, wages and other payments. W2 ? Amounts withheld from salaries or wages and other payments shown at W1. W4 ? Amounts withheld where no ABN is quoted. W3 ? Other amounts withheld (excluding any amount shown at W2 or W4)
Personally I use 1. If you want more money from your check and a little less going to federal/state, you could use 2. But, at the end when you do your taxes, you won't get a big refund like you normally do with 0.