If you’d rather have a fatter paycheck and a smaller refund, you can control this. All you have to do is submit a new Form W-4 to your employer to adjust your federal income tax withholding.

Should I change my W-4 withholding?

The key to paying the right amount of tax is to update your W-4 regularly. Do this whenever you have a major personal life change. If you count on a big tax refund every year, you should also pay attention to your withholding because how much you have withheld directly impacts your refund.

What do I do on my W-4 Form if I want less taxes taken out?

Your W-4 determines the amount of money your employer withholds from each paycheck. If you want less taxes taken from your paycheck, then you need to adjust your W-4 and claim more allowances.

What happens when you change your W-4 allowance?

If those taxpayers change their withholding and enter more allowances on Form W-4, they’ll get more money in their paychecks throughout the year. Employees who have too little withheld are not paying enough taxes throughout the year, and they may face an unexpected tax bill or penalty when they file next year.

Why do I need to Double Check my W-4 Form?

W-4 form also known as an Internal Revenue Service tax form is filled by an employee in USA to indicate his/ her tax situation to the employer. This gives the employer an idea about how much amount of tax to withhold from the employee’s paycheck. After filing your tax return, a smart financial move is to double check your Form W-4.

When to submit new Form W-4 to employer?

Taxpayers who complete new Form W-4s should submit it to their employers as soon as possible. With withholding occurring throughout the year, it’s better to take this step sooner, rather than later. People who have too much tax withheld will get less money in their regular paycheck.