We are in the second half of year and it is time to look at your current year income tax withholding from your paycheck. If you receive a large refund from IRS after you file your income tax return, or you owe the IRS money when you file your return, you should consider adjusting your income tax withholding.
Tax withholding from your paycheck is based on the number of withholding allowances you claim on Form W-4, Employee’s Withholding Allowance Certificate.
If your tax or family situation change, it’s up to you to give your employer a new W-4. Many people neglect to take this step, resulting in withholding that is either too high or too low. (more…)