Some people are surprised to learn they’re due a large federal income tax refund when they file their taxes. Others are surprised that they owe more taxes than they expected. If this has happened to you, then it’s time to check your federal tax withholding or payments.
Here are some tips to help you bring the tax you pay during the year closer to what you’ll actually owe–and avoid a tax surprise when you file your 2013 tax return next year.
Wages and Income Tax Withholding
- New Job. When you start a new job, your employer will ask you to complete a Form W-4, Employee’s Withholding Allowance Certificate. Complete it accurately to figure the amount of federal income tax to withhold from your paychecks.
- Life Event. Change your Form W-4 when certain life events take place such as a change in marital status, birth of a child, getting or losing a job, or purchasing a home. Any of these life events impact the amount of taxes you owe. Typically, you can submit a new Form W-4 at any time during the year.
- Federal Withholding Calculator. Use our handy online financial calculator to help you figure the correct amount of tax to withhold based on your situation.