What is a W-4?
A W-4 is the IRS form that tells your employer how much of your money to set aside (withholding) from each paycheck for taxes.
You owe a certain amount of taxes based on income and other factors.
Withholding is like a payment plan. If the amount is off, your total could end up above or below what you are required to pay at the end of the year.
It's a vital aspect in determining if you will owe or get a refund.
So, it is important to keep it up-to-date!
Owe on your taxes?
Let's take a look at your W-4.
..Well, you can use me to spell all sorts of words! Like watermelon, wiggle, who, what, where, why, and elbow (i'm on the end of that one). Also worms, wowsers, whamma-lamma-ding-dong, wild, wisdom, worthless, whippersnapper, waffles, warble, weightless, wolves, wizardry, whisk, web, wooly, whatchamacallit, weird, whale, waterboarding, wafer, womanly, widget, wings, webpage, warmonger, wood-worker, western, whack, whollup, whopper, and whistle...
Okay. When & How Do I Update It?
You fill out a W-4 when you start a new job, but major life events can trigger changes in your taxation such as (but not limited to):
-
changing jobs
-
getting a second job
-
a marriage or divorce
-
spouse changing or starting a job
-
having a new child
-
a child turning 17
Similar events or unexpected tax results prompt a good reason to make adjustments to your W-4 withholding. If unsure, you'll want to contact your HR representative or supervisor to find out how to update it.
Alright, How do I fill it out?
The W-4 has some comprehensive tools and advice built into it.
Click this icon to access the official IRS form for you to reference or print.
Along with that, the IRS provides an interactive tool at www.irs.gov/W4App.