Tax season is here! As Americans prepare and submit tax returns to the IRS, there are a lot of forms to keep track of, including Form W-4.
This form can be a bit confusing for taxpayers.
Form W-4 is the Employee’s Withholding Certificate.
IRS: W-2 Form for wages and taxes explained
W-4 Tax Form and its use for the IRS explained
This form is for employees to fill out and give to their employers.
This will let them know how much to withhold from their paychecks for federal taxes.
This helps keep you from being under or overtaxed.
This helps you to not receive a large refund of money you shouldn’t have paid to begin with or owing a large tax bill.
IRS: Form 1040-SR explained
Filling out your W-4 accurately for the IRS
First you need to fill out your personal information in step one.
Taxpayers only need steps two through four to be completed if they pertain to you and instructions are provided.
Step five, the final step, is your signature.
IRS: Deduct these things to save yourself $1,000s
Changes to the W-4
2020 saw a change for the form.
This made it easier for taxpayers to get how the withholding system works, making it more accurate.
The same information is needed but it’s asked for in a simpler way.
Questions asked are about your personal information, employment, and income.
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