Have you updated your W-4 recently?

Your W-4 (called a “withholding form”) is what your employer uses to calculate the amount of taxes to withhold from your paychecks throughout the year. Withhold too much and you get a refund at tax time. Withhold too little and you’ll be writing the IRS a check in April. 

If your personal situation has changed during the past year (marriage, divorce, new dependents, additional income, etc) and your employer isn’t aware, they will continue to withhold based on the last W-4 you completed. It’s a good idea to review it if you aren’t sure when the last time yours was updated.

If you ended up owing taxes last year, do a “paycheck checkup” by reviewing your withholdings as soon as possible. It’s too late to make changes to your withholdings to change your 2020 taxes but you can still make withholding changes for 2021. Read the full article here for help figuring out if you should update your W-4 and tips for doing it.