DE 4 Rev. 46 (12-17) (INTERNET) Page 3 of 4
INSTRUCTIONS — 1 — ALLOWANCES*
When determining your withholding allowances, you must consider
your personal situation:
— Do you claim allowances for dependents or blindness?
— Will you itemize your deductions?
— Do you have more than one income coming into the household?
TWO-EARNERS/MULTIPLE INCOMES: When earnings are derived
from more than one source, underwithholding may occur. If you
have a working spouse or more than one job, it is best to check the
box “SINGLE or MARRIED (with two or more incomes).” Figure the
total number of allowances you are entitled to claim on all jobs
using only one DE 4 form. Claim allowances with one employer.
Do not claim the same allowances with more than one employer.
Your withholding will usually be most accurate when all allowances
are claimed on the DE 4 or Form W-4 filed for the highest paying job
and zero allowances are claimed for the others.
MARRIED BUT NOT LIVING WITH YOUR SPOUSE: You may
check the “Head of Household” marital status box if you meet all
of the following tests:
(1) Your spouse will not live with you at any time during the year;
(2) You will furnish over half of the cost of maintaining a home
for the entire year for yourself and your child or stepchild who
qualifies as your dependent; and
(3) You will file a separate return for the year.
HEAD OF HOUSEHOLD: To qualify, you must be unmarried or
legally separated from your spouse and pay more than 50% of the
costs of maintaining a home for the entire year for yourself and your
dependent(s) or other qualifying individuals. Cost of maintaining the
home includes such items as rent, property insurance, property taxes,
mortgage interest, repairs, utilities, and cost of food. It does not include
the individual’s personal expenses or any amount which represents value
of services performed by a member of the household of the taxpayer.
(A) Allowance for yourself — enter 1 ....................................... (A)
(B) Allowance for your spouse (if not separately claimed by your spouse) — enter 1 ............... (B)
(C) Allowance for blindness — yourself — enter 1 ................................ (C)
(D) Allowance for blindness — your spouse (if not separately claimed by your spouse) — enter 1 ........ (D)
(E) Allowance(s) for dependent(s) — do not include yourself or your spouse ................... (E)
(F) Total — add lines (A) through (E) above ................................... (F)
INSTRUCTIONS — 2 — ADDITIONAL WITHHOLDING ALLOWANCES
If you expect to itemize deductions on your California income tax return, you can claim additional withholding allowances. Use Worksheet B to
determine whether your expected estimated deductions may entitle you to claim one or more additional withholding allowances. Use last year’s
FTB Form 540 as a model to calculate this year’s withholding amounts.
Do not include deferred compensation, qualified pension payments, or flexible benefits, etc., that are deducted from your gross pay but are not
taxed on this worksheet.
You may reduce the amount of tax withheld from your wages by claiming one additional withholding allowance for each $1,000, or fraction of
$1,000, by which you expect your estimated deductions for the year to exceed your allowable standard deduction.
WORKSHEET B ESTIMATED DEDUCTIONS
WORKSHEET A REGULAR WITHHOLDING ALLOWANCES
1. Enter an estimate of your itemized deductions for California taxes for this tax year as listed in the
schedules in the FTB Form 540 ....................................... 1. __________________________
2. Enter $8,472 if married filing joint with two or more allowances, unmarried head of household, or
qualifying widow(er) with dependent(s) or $4,236 if single or married filing separately, dual income
married, or married with multiple employers ................................ – 2. __________________________
3. Subtract line 2 from line 1, enter difference ................................ = 3. __________________________
4. Enter an estimate of your adjustments to income (alimony payments, IRA deposits) ............ + 4. __________________________
5. Add line 4 to line 3, enter sum ....................................... = 5. __________________________
6. Enter an estimate of your nonwage income (dividends, interest income, alimony receipts) ......... – 6. __________________________
7. If line 5 is greater than line 6 (if less, see below);
Subtract line 6 from line 5, enter difference ................................ = 7. __________________________
8. Divide the amount on line 7 by $1,000, round any fraction to the nearest whole number ......... 8. __________________________
Enter this number on line 1 of the DE 4. Complete Worksheet C, if needed.
9. If line 6 is greater than line 5;
Enter amount from line 6 (nonwage income) ................................ 9. __________________________
10. Enter amount from line 5 (deductions) ................................... 10. __________________________
11. Subtract line 10 from line 9, enter difference ................................ 11. __________________________
Complete Worksheet C
*Wages paid to registered domestic partners will be treated the same for state income tax purposes as wages paid to spouses for California PIT withholding
and PIT wages. This law does not impact federal income tax law. A registered domestic partner means an individual partner in a domestic partner
relationship within the meaning of Section 297 of the Family Code. For more information, please call our Taxpayer Assistance Center at 1-888-745-3886.
