How can I adjust tax withholding ?

Many people discover that the tax withholding from their regular paychecks is either too low or too high. If you’re one of these people, don’t fret because you can adjust the withholding amounts by simply filing a new Form W-4 with your current employer. Tax payments deducted from your wages can be canceled if you increase wage withholding enough for estimated tax payments to be deemed unnecessary.

The first thing you need to do in adjusting tax withholding is to gather all your documents and review your year-to-date wage earnings, along with your spouse if you’re married. You should also review other taxable income you have to determine if the tax being withheld is too little or too much, based on the projected earnings for the remaining months of the year. Estimate all the standard and itemized deductions to arrive at the estimated tax liability and taxable income for the year.

You can download the W-4 Form for Employees Withholding Allowance Certificate at the IRS (Internal Revenue Service) website. Complete the form and make the changes to your filing status, exemptions claimed and other information that would help in increasing or decreasing the tax-withholding amount for each pay period.

Once you’ve completed the form, you don’t have to send it to the IRS; simply provide the filled up Form W-4 to your current employer and they would implement the necessary changes. To see if the tax withholding amount changed, wait for the next payroll date and verify the changes made to your pay slip.

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