WITH THE NEW TAX RATES… SHOULD YOU MAKE CHANGES TO YOUR W-4?
HELLO, WE AT NESTEGGG WORK WITH THE INTERNAL REVENUE SERVICE IN CONJUNCTION TO OUR CLIENTS AND THOUGHT YOU MAY BE WONDERING… WITH THE NEW TAX RATES… HOW SHOULD YOU MAKE SURE YOU DON’T END UP WITH AN UNEXPECTED TAX BILL NEXT YEAR?
TO KNOW FOR SURE… USE THE IRS WITHHOLDING CALCULATOR AVAILABLE AT WWW.IRS.GOV. IT WILL WALK YOU THROUGH THE PROCESS AND DETERMINE HOW MANY PERSONAL ALLOWANCES YOU SHOULD CLAIM.
IF THE CALCULATOR RESULTS SUGGEST YOU SHOULD CHANGE YOUR WITHHOLDING … YOU WILL NEED TO SUBMIT A NEW W-4 FORM TO YOUR EMPLOYER TO WITHHOLD THE CORRECT AMOUNT OF TAXES FROM YOUR PAY.
YOU CAN DOWNLOAD A W-4 FORM FROM I-R-S-DOT-GOV-SLASH-W-4. FILL OUT THE TOP WITH YOUR PERSONAL INFORMATION, ON LINE FIVE … PUT THE ALLOWANCES SUGGESTED BY THE CALCULATOR.
IF YOU NEED TO WITHHOLD MORE TAXES… YOU CAN ADD THAT AMOUNT ON LINE SIX AND ONLY USE LINE SEVEN IF YOU QUALIFY TO CLAIM A TOTAL EXEMPTION FROM WITHHOLDING.
ONCE YOU’RE DONE… SIGN… DATE… AND GIVE YOUR NEW W-4 FORM TO YOUR EMPLOYER AS SOON AS POSSIBLE; KEEP IN MIND… THE FEWER ALLOWANCES YOU ENTER ON THE FORM … MEANS MORE TAX WILL BE WITHHELD FROM YOUR PAYCHECK.
- SO ENTERING “ZERO” OR “ONE” ON YOUR W-4 WILL MEAN MORE TAX IS WITHHELD.
- BUT ENTERING A LARGER NUMBER WILL MEAN LESS TAX WILL BE WITHHELD…
THE ABOVE COULD RESULT IN A SMALLER TAX REFUND… OR POTENTIALLY A TAX BILL WHEN YOU FILE YOUR TAXES NEXT YEAR.
THE EARLIER YOU CHECK … THE MORE TIME THERE IS FOR WITHHOLDING TO TAKE PLACE EVENLY DURING THE REST OF THE YEAR. WAITING MEANS THERE ARE FEWER PAY PERIODS TO MAKE THE TAX CHANGES… WHICH COULD HAVE A BIGGER IMPACT ON EACH PAYCHECK.
- SO DON’T DELAY YOUR PAYCHECK CHECKUP.
- GET STARTED AT IRS WITHHOLDING CALCULATOR AVAILABLE AT WWW.IRS.GOV.