Year-round tax planning is important for everyone. You should make sure they’re having the correct amount of tax withheld from their paychecks. It’s a good idea for taxpayers to do a Paycheck Checkup for these reasons:
Having too little withheld could lead to a smaller than expected refund.
Having too little withheld could even lead to an unexpected tax bill.
Employees who have too much tax withheld will see less money in each paycheck.
Having more money in each paycheck may be more helpful than getting a large refund when they file.
Taxpayers can use the IRS Tax Withholding Estimator to check their withholding. All taxpayers should use this tool to do a Paycheck Checkup ASAP if they haven’t already done so in 2019. Some taxpayers should do another Paycheck Checkup even if they already did one this year. This includes anyone whose personal or financial information changes due to a life event. Some life events that can affect withholding are:
Marriage
Having a baby
Getting a new job
Getting a raise at work
Taxpayers who want to change how much tax is withheld from their paycheck simply need to submit an updated Form W-4 to their employer.
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Schedule a ConsultationThis article is for general information only and is not tax or legal advice for your specific situation.