Retirement tax questions

If you mark the ''spouse not working'' box on your W-4 form(s), they are going to withhold more more which will produce a larger refund at year end.   There is no 'D' block on the new W-4 form.  

Consider using the TurboTax Withholding Estimator if you:

1. Expect to work only part of the year;

2. Have dividend or capital gain income, or are subject to additional taxes, such as Additional Medicare Tax;

3. Have self-employment income (see below); or

4. Prefer the most accurate withholding for multiple job situations.

In the past, the W-4 was based on a system of withholding allowances. You typically filed a new form when you started a job or needed to adjust your tax withholding.  The IRS replaced the method for determining the amount to withhold beginning in 2020 to reduce the complexity of calculating how much to withhold from each paycheck. It also changed the W-4 Form to increase the understanding and accuracy of the withholding system.

While the withholding form uses the same underlying information as the old design, it replaces the complicated worksheets from the old form with more straightforward questions. These changes should make it easier for employees to more accurately determine how much should be withheld from their paychecks.

How to fill out Form W-4

So, how does your employer know how much federal income tax to withhold? While your employer already knows how much they pay you, Form W-4 collects what they don't know — filing status, tax deductions, and more — to calculate the amount to withhold using the IRS withholding tables.

• The amount of federal income tax withheld from your paycheck reduces your take-home pay. So, it's important to fill out Form W-4 accurately. Doing so will allow you to maximize your take-home pay, minimize your tax refund — if that's your goal, or minimize the amount that you owe.
• Many people only fill out a Form W-4 when they're hired and don't think to update it until they start a new job. Even though this is common, you should submit a new Form W-4 with your employer whenever you have any major tax situation changes. If you don't fill out a new form, your employer won't know to adjust your federal income tax withholding to account for the change.