IRS: What is a W-4 and how will it help my income tax in 2023?

Your W-4 is what you use to withhold taxes and can help you to avoid a major tax bill from the IRS in 2023 if filled out correctly.

The form will let your employer know how much money they need to withhold for federal taxes.

Your W-4 will help you from paying a large tax bill at the end of the year as well as stop you from overpaying the IRS.

While a large refund is nice, that’s really money you could have kept in your pocket all year.

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You’re legally required to pay taxes on most forms of income.

When you begin a new job with a new employer, part of your new hire paperwork is a W-4 form to be sure the correct amount is withheld before you’re paid.

How do you fill out a W-4 for the IRS?

There is a process to find out exactly what you need to withhold.

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The first step is to give all personal information including your filing status.

This will determine your standard deduction and tax rate.

If you work more than one job you’ll do step two.

This determines the correct amount of withholding from all of your jobs, including your spouse if you file jointly.

The third step is to claim any dependents.

Finally, you’ll report other sources of income and finish your form by signing and dating it.