IRS requires every working citizen to file a W-4 form when they get a new job or when they get married, divorced, have a child or picking up a second job while working. The reason for that is these are the changes that are going to happen on how much tax you’re paying on an annual basis. The IRS form W-4 simply determines how much money will be withheld from your paycheck so that your employer can pay for it to the IRS.
Filling out the form correctly is crucial as if you were to withheld less, you may get a huge tax bill at the end of tax season. The opposite of this could be even worse as you won’t be getting any of the money you’ve overpaid to the IRS that exceeds your tax liability till your tax refund arrives.
So the importance of this form is very important and it must not be avoided.
Print W-4 Tax Form
Getting a blank copy of the IRS form W-4 is easy. The Internal Revenue Service offers all of the forms that are required to do tax duties on irs.gov.
How to Calculate Your Allowance
The IRS form W-4 already comes with a Personal Allowances Worksheet so that you can determine how many allowances to claim. You must be correct with your answers so that your employer can have an easy understanding of your tax situation in order to withhold the right amount of money from your paycheck.
If you think you would be doing yourself a favor by withholding less money from your paycheck, think again as you may be subjected to a higher tax bill than you’ve expected when your tax bill arrives.