We are quickly approaching the middle of this fast moving year. For those of you who were ready and prepared, you are now past the tax season and are thankful to have all of that mess behind you. You may have been one who owe your state and/or the IRS some money or you may have been one who got a refund back. If either of those two things happened, especially in large numbers, it is time for a withholding checkup.
Did you know you can predict and even manage the amount of money you are going to owe to the IRS? While it is never perfect and can change though the year, you can work to get nothing back in a refund and to owe nothing either.
The IRS even has a great tool that has helped many better predict and manage their withholding. By having your latest pay stubs and your previous years tax information, you can utilize this tool to better determine what you need to withhold.
Once you have your change information, complete a new W4 form, and any state form, and give those to your employer.
While this tool is never perfect, you can get pretty close. What was maybe a $3000 refund could be a $200 refund and more than $200 more in your take home pay each month to intentionally make part of your spending plan.
Each state has their own forms and tools. A quick search on the internet will allow you to mange your state withholdings too.
Again, this tool(s) is never perfect. Things change in your lives. As a result, make sure you run this tool(s) every couple of months to make sure you are on the right withholding path.
You can access the IRS site by clicking here.