Checking withholding can help taxpayers decide if they need to give their employer a new W-4
Checking withholding can help taxpayers decide if they need to give their employer a new W-4
Individuals who should check their withholding include those:
- Whose spouse is an employee
- Who are working two or more jobs at the same time or who only work for part of the year
- Who claim credits such as the child tax credit
- With dependents age 17 or older
- Who itemized deductions on prior year returns
- With high incomes and more complex tax returns
- With large tax refunds or large tax bills for last year
All taxpayers should review their federal withholding each year to make sure they’re not having too little or too much tax withheld. Effective tax planning can help you to minimize your future tax liability.
Employees, retirees and self-employed individuals can use the IRS Tax Withholding Estimator to help decide if a change should be made to their withholding. The IRS online tool guides users, step-by-step through the process of checking your withholding, and provides withholding recommendations to help aim for your desired refund amount when yoiu file next year. Those who need to adjust their withholding can fill out a new Form W-4, Employee’s Withholding Certificate and submit the new Form W-4 to your employer.
Items you will need before using the Tax Withholding Estimator:
- Your most recent pay statements
- Information for other income sources
- Your most recent income tax return
The IRS Tax Withholding Estmator tool does not ask for sensitive information such as name, Social Security number, address, or bank account numbers.
As always, should you have any questions or concerns regarding your tax situation please feel free to contact us.
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