February 26, 2024
Question:
How do I know if I need to adjust my withholding? And if I should make an adjustment, how do I do it?
Answer:
When you file your tax return, do you get a larger refund or owe more than you feel comfortable with?
If so, you should make an adjustment. In order to determine how much of an adjustment you should make, you should consult your tax preparer.
If you self-prepare, a simple way to compute this is to take the amount of the adjustment you want to make and divide it by the remaining number of pay periods.
You can also use the Tax Withholding Estimator on the IRS website: https://www.irs.gov/individuals/tax-withholding-estimator
Then, you would fill out a new Form W-4 (for Federal) and/or State equivalent form.
Submit these forms to your payroll department at work.
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