April’s Just One Thing
With the tax deadline (just barely) in our rear view, now is the perfect time to check off one more tax related task for the year. That’s why our Just One Thing for April is to review and update your W-4.
Your W-4 (called a “withholding form”) is what your employer uses to calculate the amount of taxes to hold back from your paychecks. 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, had a child, additional income, etc) your taxes will probably change but your employer will continue to withhold based on the last W-4 you completed. It’s a good idea to review yours if you aren’t sure when the last time yours was updated.
Read the full article here for help figuring out if you should update your W-4 and tips for doing it.