How to complete the new W4

The new W4 is so confusing. How do we know if we are completing it correctly?

posted

Hi Pillaymom, It can be so tricky to find the sweet spot for withholding just the right amount of tax to not owe and not receive a large refund. There is a W-4 Calculator that takes you step-by-step through completing the form,

https://turbotax.intuit.com/tax-tools/calculators/w4/

Once you complete the form, give it to your employer. Then, keep a close eye on your next few paychecks to see how the changes impacted your federal income tax withholding.

It's always a good idea to compare your 2021 total tax reported on your 2021 tax return to your 2022 year to date withholding reported on your most recent paystub. This is a general help if you expect your income and deductions in 2022 to be similar to 2021.

I hope this is helpful!

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