The IRS form W-4 is one of the most important documents that you need to file when you’re starting a new job. It determines how much your employer needs to withhold from your paycheck to pay the IRS. Since IRS requires Americans to pay their taxes throughout the year, it basically puts you on a monthly payment plan to pay your income tax rather than paying it all at once when the tax season arrives.
Although you’re not required, we strongly recommend filing a new W-4 form when you get married, divorced, have a child, or after picking up a second job as they can have an impact on your income tax. Sure, you can keep it the same as it is but allowing your employer to withhold the correct amount will save you from a lot of troubles.
W-4 for Employees Free
Once you get it on your hands, fill out the W-4 form with the correct information because if you don’t withhold enough tax, the result might be surprised when it’s time to pay. However, if you withhold too much, you will be basically giving the government an interest-free loan as you won’t be getting any amount that exceeds your tax liability till your tax refund arrives.
As an employee, the W-4 form you give to your employer will stay effective until you file a new one, so if there are any changes to your filing status, file a new one so that your employer can withhold the correct amount of taxes from your paycheck.