Just One Thing for April

Our “Just One Thing” for April comes the week after the tax filing deadline and helps get you ready for next years taxes (yes, already): check 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 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, had a child, 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 this year, or got a big refund, it might mean you’re withholding too little or too much. Read the full article here for help figuring out if you should update your W-4 and tips for doing it.