What is Form W-4?
Form W-4 (Employee's Withholding Allowance Certificate) is a form you give to your employer, which tells them how much federal tax they should withhold from your paycheck.
When you first get hired, your employer will have you to fill out a W-4. Consider submitting an updated W-4 whenever you:
- Get married;
- Add or lose a dependent;
- Have a child that will turn 17 next year (which means you'll lose the Child Tax Credit);
- Plan on having significant income from dividends, investments, or retirement;
- Pay off your mortgage;
- Get a second job or start earning income from your own business;
- Want a larger or smaller tax refund on next year's taxes;
- Want to owe less on next year's taxes (or more, but few taxpayers want that).
Although you don't file a W-4 with your taxes, can help you update your W-4 and print it out so you can give it to your employer. More info