Great Question!!
It is absolutely not too late to update your W-4 now! In fact, it's highly recommended to update your W-4 whenever your financial or personal situation changes, or if you realize your withholding isn't accurate.
Here's why and what you should know:
- You can change your W-4 at any time. The IRS allows you to submit a new Form W-4 to your employer whenever you need to adjust your withholding.
- Adjustments take effect quickly. Once your employer processes your new W-4, the change in your withholding will typically take effect in your next one or two paychecks.
- Mid-year adjustments are crucial. If you realize you've been under-withholding (not having enough taxes taken out) for the first part of the year, adjusting your W-4 now allows you to "catch up" on your tax payments over the remaining paychecks of the year. This helps you avoid a large tax bill or underpayment penalties when you file your tax return next year.
- Waiting until the new year can lead to issues. If you wait until the beginning of the new year, you'll still have under-withheld for the current year (2025). This means you'd likely owe a significant amount when you file your 2025 taxes. Making the change now helps spread that tax liability across your remaining paychecks.
Steps to take now:
- Use the IRS Tax Withholding Estimator: This is still the most accurate tool to determine the correct amount to withhold. Input your year-to-date income, any taxes already withheld, and your expected income for the rest of the year.
- Submit a new Form W-4: Once you have the recommended withholding amount, fill out a new Form W-4 and submit it to your employer's payroll or HR department.
- Monitor your paychecks: After submitting the new W-4, check your next few pay stubs to ensure the federal tax withholding has been adjusted as you requested.
By making this adjustment now, you'll be in a much better position to meet your tax obligations for the current tax year (2025).
Please feel free to reach backout again if you have any additional questions or concerns.
and thank you again, please have an amazing rest of your day!
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer.”
Terri Lynn
