Life events such as marriage, divorce, having a baby, or getting a promotion or bonus can have a big impact on your taxes. Filling out a new Form W-4 tells your employer how to calculate federal income tax withholding for your paycheck. That way, you won't wind up owing a big tax bill or having too much money withheld from your paycheck throughout the year.
- If it's been a while since you filled out Form W-4, you should know that the form was entirely redesigned.
- The Tax Cuts and Jobs Act of 2017 significantly changed federal tax laws, so workers and their employers needed a more up-to-date form to calculate the amount of federal tax to withhold.
How to Estimate Federal Withholding
Turbo tax also has a W 4 Calculator that you can use to calculate the withholding. You should update your withholding every time there is a major life event or you get a new/second job or get a substantial raise. You can use the link below to calculate your withholding.
W-4 Calculator 2022
