A W-4 Form Equals Tax Planning
The 2011 tax deadline on April 17, 2012 has come and gone. If you made it through another year, congratulations. If you had to file an extension, you have six months to get your tax return into the IRS. There are two groups of people who file tax returns with the IRS.
Those who owe.
Those who get refunds.
Both have something in common. Both groups have to figure out what their tax liability will be for the for the upcoming year? If you received a large refund you had too much of your hard-earned money withheld from your paycheck. If you have owed a lot of money, you are having too little withheld or underestimating your estimated tax liability. You should complete a new Form W-4 each year. The W-4 informs the employer what your withholding should be based on the number of dependents and how often you are being paid.
The IRS has a wonderful tool on their website to help you complete the Form W-4 called the “Withholding Calculator. The link to the IRS website for the Withholding Calculator is:
additionally, the Form W-4 can be found at:
If your tax circumstances change you should complete a new W-4 to update your payroll records.
Great tax planning starts with the basics of knowing what your withholding and estimated tax should be for the year since it is your hard-earned money. Have you filled out a new W-4 for 2012?
Have you completed a new W-4 for the year? Leave a comment below.
Post Footer automatically generated by Add Post Footer Plugin for wordpress.
Navigating The Tax Headline of the Week
NewsletterQ&A coming soon.
Tax TipsThe Additional Child Tax Credit is available on dependents under the age of 17.
- CIRCULAR 230 DISCLOSURE "We are required by IRS Circular 230 to inform you that the advice contained herein (including all attachments) was not intended or written to be used for the purpose of avoiding any penalties that may be imposed under Federal tax law and cannot be used by you or any other taxpayer for the purpose of avoiding such penalties."
Your Tax Teacher Podcast Recent EpisodeTax refunds will start....
Subscribe to the Your Tax Teacher Weekly Navigating the Tax Headlines and Get the Millionaire Tax Strategy for FREE!