Form W-4 | Employee’s Withholding Allowance Certificate
Briefly, as described by the IRS – You may utilize this form so your employer can withhold the correct federal income tax from your pay.
Normally, when you start a new job your employer will ask you to complete one, but getting into the habit of reviewing your W-4 every year might prove beneficial, especially if your personal or financial situation changes.
How should I fill it out? – Is one of the most common questions we receive as tax professionals and there are definitely 2 scenarios to recap:
- You received a big bill in April. We’re sure you don’t want another, you may opt for the use of Form W-4 to increase your withholding. Identifying your allowances correctly is crucial to have the right amount of taxes subtracted from your pay.
- You received a large refund. Consider revising your W-4, there’s a possibility you might be parting ways with your wages more than needed. Utilize the form to reduce your withholding.
Click the button below to download the latest W-4 version.
Form source: Irs.gov