Asking for a Friend - How do I know if I need to adjust my withholding? And if I should make an adjustment, how do I do it?

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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