Not Filing Tax Withholding Certificate

Under federal law, taxpayers must pay their taxes gradually throughout the year. To allow this, there is Form W-4, Employee’s Withholding Certificate. The Internal Revenue Service requires all employees to complete this tax withholding form.

In previously issued Forms W-4, employees could claim allowances to set how much tax should be withheld from their paychecks. This has been eliminated and instead of claiming allowances based on a few factors, taxpayers now only need to detail those factors on the form.

This includes anticipated tax deductions and credits, multiple jobs, spouse works if filing jointly and extra withholdings. Based on the information you provided on Form W-4, your employer will withhold the right amount of tax. If the total taxes withheld at the end of the year exceeds your tax bill, you will receive a tax refund. Therefore, if you want to avoid owing the IRS, make sure to fill out your tax withholding form accurately.

Employee Not Filling Out Form W-4

Although it’s made mandatory by the IRS, not filing W-4 will result in the employer withholding tax at a higher single rate regardless of the employee’s filing status. If you as an employee aren’t single and have dependents, this will result in withholding way more tax than necessary. Therefore, increasing your tax refund.

Nevertheless, Form W-4 should be completed. Sure, every amount will contribute to your tax refund but as a result of that, it will tighten your tax cash flow significantly. In all cases, it is always best to complete the tax withholding form.

You can use the IRS tax withholding estimator to see how much tax you withheld to speculate how much your tax refund might be.

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