CHARLOTTE – As the year of 2021 winds down, more and more employees will be looking into the 2021 tax season. And many will see a big difference in their tax returns if they did not fill out the W-4 for correctly. This formed has changed completely from what we were used to in the past. So if you filled out a new W4 form in either 2020 or 2021, I strongly encourage you to click here Tax Withholding Estimator make sure you know what you filled out and why.
The IRS encourages everyone to use the Tax Withholding Estimator to perform a “paycheck checkup.” This will help you make sure you have the right amount of tax withheld from your paycheck.
Here is the tax withholding estimator: https://apps.irs.gov/app/tax-withholding-estimator
There are several reasons to check your withholding:
- Checking your withholding can help protect against having too little tax withheld and facing an unexpected tax bill or penalty at tax time next year.
- At the same time, you may prefer to have less tax withheld up front, so you receive more in your paychecks and get a smaller refund at tax time.
- If you changed your withholding for the year, the IRS reminds you to be sure to recheck your withholding at the start of the next year. A mid-year withholding change may have a different full-year impact. So, if you do not file a new Form W-4, your withholding might be higher or lower than you intend. Also, if you had a major life change, such as marriage, the birth of a child, adoption or bought a home.
If you have additional questions about your withholding, consult your employer or tax advisor.
Jen Stevenson Payroll LLC is a proud member of Union County Chamber of Commerce, Waxhaw Business Association, and the American Payroll Association