YOUR JOB
Get More From Your W-4
Mid-year's a good time to give your W-4 a checkup. If you don't, you may get an unpleasant surprise (smaller refund or a bigger balance due) when you complete your return.
First, you may want your withholding amount to result in as close to a zero balance due as possible. That is, you want enough tax withheld from your paycheck so you don't owe the IRS money at the end of the year, but you'd rather not give the IRS an interest-free loan on too much of your hard-earned cash. You might want to plan for a refund, or even just the right balance due so you won't owe a penalty if you pay the balance in on time.
You should always consider reviewing your W-4 if certain situations have occurred since you last filed your W-4.
In your personal life, did you:
- Get married or divorced
- Add or lose a dependent
- Buy or sell a home
- Retire (but continue working part-time)
In the financial realm, did you experience changes to:
- Your investment income (e.g., interest, dividends, capital gains)
- Your earned income (e.g., if you or your spouse started or ended a job, got promoted)
- Other income (such as scholarship income and gambling and lottery winnings)
- Your deductions (such as medical or moving expenses)
- Your tax credits (such as the Earned Income Credit, Child Tax Credit, or Savers Credit)
Need more help? Check out H&R Block's Federal tax withholding calculator. Or check with an H&R Block tax professional. Be sure to review your state tax withholding as well. Self-employed individuals should review their estimated tax payments. The next scheduled estimated tax payment is due June 16.