Starting a New Job? Don't Forget to Fill Out Your W-4!
Before you begin working at a new job, thank God first because that’s a miracle on its own given the way the economy is right now. But right after that, ask your employer to give you your Form W-4. This form is published and updated by the IRS and is used to declare filing status, dependence, tax credits and deductions. The information you provide on that form is used for payroll tax purposes (payroll withholdings and deductions, usually).
While this form is typically given to new hires, you can request to update the Form W-4 your employer has on file whenever you experience a change in filing status, dependents, or other credits/deductions.
The IRS constantly makes changes to Form W-4 as and when necessary. Recently, the form was redesigned to reduce complexity and increase transparency to reflect the current movement towards making more information available to the consumer. The new design takes the same information that was present in the old version but replaces the complicated nature of it with more straightforward questions that make it easier for you to figure out your withholding. A newer 2021 version of the form was released in December 2020.
But just because it was redesigned doesn’t mean you’re required to fill it out again. If you’ve already filled out a W-4 prior to 2020, you’re good (unless something needs to be changed/updated). Your most recently furnished Form W-4 is the one that your employer will refer to.
The IRS posted a whole bunch of FAQs about everything related to the W-4 on its website which you can find here.
For more help with your taxes, don’t hesitate to reach out and have any of the seasoned professionals at Landmark Tax Services talk you through the process. You’re not alone in the chaos. And tax filing doesn’t have to be as frustrating as it’s made out to be, with the right kind of help available to you at the click of a button!