Breaking News Millions of Taxpayers At Risk - Smaller Refunds or Increased Balance Due Next Year. Review Your W-4 Today.

W-4 Withholding Calculator: Smaller Refund? Increased Balance Due?

Millions of taxpayers may have an unexpected tax bill next year because of the Making Work Pay tax credit unless they adjust their withholding, according to analysis by The Tax Institute at H&R Block.

The only way to avoid a reduced refund or bigger tax bill next year for some of those affected taxpayers is to adjust their W-4 and submit it to their employer. If not, the amount being withheld could be more than the credit amount they're eligible to claim.

Those taxpayers who could be negatively impacted include:

  • Married couples with two incomes
  • Individuals with multiple incomes
  • Retirees who have taxes withheld from a pension or social security benefits.
  • Individuals who work but who can be claimed as a dependent on someone else's tax return.

 

To avoid an unwelcome tax surprise, H&R Block recommends taxpayers receive a tax checkup now to see if they should adjust their W-4 allowances before the end of the year. Taxpayers just need to follow three easy steps:

  1. Use the Making Work Pay calculator now to estimate if your total withholding change will be greater than the credit you'll likely be able to claim, then
  2. Click on the Find a Tax Office link or call 1-800-HRBLOCK to find an office near you to schedule a tax checkup, and finally,
  3. Come by the local office for a free tax checkup and bring last year's tax return and a current pay stub indicating year-to-date totals. This checkup takes only a few minutes and could end up saving you from an unexpected tax bill at tax time.
Disclaimer: The tax checkup and information provided are estimates, and your actual tax liability may materially differ depending on recent and future changes to the tax law and changes in your personal and financial circumstances. If your personal and financial circumstances do change, we suggest that you review the changes with your tax advisor.