Recent tax law changes can leave many taxpayers feeling overwhelmed or confused — especially when understanding their IRS Form W-4 and tax withholdings. If your refund was lower than expected, or if you owed taxes, it might be time to review and adjust your W-4. Lowe Levinson Financial Solutions is here to help you navigate these changes and turn them into opportunities to increase your tax refund. Here’s all you need to know:
What is IRS Form W-4?
IRS Form W-4, the Employee’s Withholding Allowance Certificate, is an essential document that determines the amount of federal income tax withheld from an employee’s paycheck. Form W-4 tells employers an employee’s filing status, multiple jobs adjustments, amount of credits, amount of other income, amount of deductions, and any additional amount to withhold from each paycheck to use to compute the amount of federal income tax to deduct and withhold from the employee’s pay.
How to fill out IRS Form W-4
- Enter personal info: Name, address, SSN, and tax-filing status.
- Account for multiple jobs: Follow instructions for accurate withholding.
- Claim dependents: Enter kids/dependents for tax credits (income under $200,000).
- Refine withholdings: Note extra tax or expected deductions.
- Sign and date: Submit the completed form to HR/payroll or complete it online.
Why you should adjust your Form W-4
A critical key to maximizing your tax refund is getting your W-4 right. By adequately adjusting your withholdings, you can avoid tax underpayment penalties — and potentially unlock a higher refund. A minor tweak today can lead to a happier financial tomorrow when tax season comes around.To adjust your W-4 — and maximize your next tax refund. Our expert tax professionals are ready to help you navigate these changes, optimize your W-4 withholdings, and improve your financial confidence. All you’ll need to bring to Lowe Levinson Financial Solutions is your most recent pay stubs for all jobs (including your spouse, if applicable), other income information (side jobs, self-employment, investments, pensions, etc.), and your most recent tax return. Ready for a brighter way to do taxes?
