If you received a big tax refund or owed a lot of money to the IRS for 2015 taxes it may be time to update your Form W-4 with your employer.  Form W-4 is the Employee’s Withholding Allowance Certificate which tells your employer how to calculate your federal income tax withholding and you should consider the following when filling it out.  Read more.
Avoid overpaying or underpaying tax for 2016 by filing a new Form W-4 with your employer to adjust your income tax withholding.  Figure out how many allowances you should claim by completing the worksheet included with the form.  While these allowances are similar to dependency exemptions on our income tax return the total allowances on your W-4 does not have to be the same.  If you’re single, for example, and want the maximum amount withheld from your paycheck then on Form W-4 you will claim zero allowances and can still claim your personal exemption on the federal income tax return.
When completing Form W-4 use caution as you should not claim more exemptions than you are entitled to.
If you need assistance completing your Form W-4 to help adjust your withholding to match the tax you expect to owe please call our office.