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(Art Credit: Kathryn Sheldon) This article is posted with permission from our partner IRS and originally appeared on the IRS blog at: https://www.irs.gov/newsroom/taxpayers-should-check-their-federal-withholding-to-decide-if-they-need-to-give-their-employer-a-new-w-4 Subscribe to IRS tax tips here. The IRS encourages all taxpayers to review their federal withholding at least once a year to make sure they're not having too little or too much tax withheld. Taxpayers whose employers withhold federal income tax from their paycheck can use the IRS Tax Withholding Estimator to help decide if they should make a change to their withholding. This online tool guides users, step-by-step through the process of checking their withholding, and provides recommendations to help aim for the withholding amount that's right for them. Taxpayers should check with their employer to update their withholding or submit a new Form W-4, Employee's Withholding Certificate. Adjustments to withholdingIndividuals should generally increase withholding if they hold more than one job at a time or have income from sources not subject to withholding. If they don't make any changes, they will likely owe additional tax and possibly penalties when filing their tax return. Individuals should generally decrease their withholding if they qualify for income tax credits or deductions other than the basic standard deduction. Either way, those who need to adjust their withholding must submit the new W-4 information to their employer as soon as possible since withholding occurs throughout the year. Individuals who should check their withholding include those:
Reasons to use the Tax Withholding EstimatorThe IRS Tax Withholding Estimator can help taxpayers:
Individuals who should not use the Tax Withholding Estimator are those:Taxpayers should prepare before using the Tax Withholding Estimator by having pay statements for all jobs, information for other income sources and their most recent income tax return. The tool does not ask for sensitive information such as name, Social Security number, address, or bank account numbers. More information:via Freelancers Union Blog https://blog.freelancersunion.org/2022/06/20/taxpayers-should-check-their-federal-withholding-to-decide-if-they-need-to-give-their-employer-a-new-w-4/
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AuthorI have 5+ years experience working as a medical transcriptionist. When I am not working, I enjoy sports like playing basketball or judo. I love making friends and connections. Archives
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