If you have filed your taxes, you may wonder what to expect and what moves you should make now. One of the most critical moves you can make is to do a check-up and make sure you have the correct amount of withholding taken out of your paycheck.
TurboTax has you covered and can help you adjust your withholding allowance on your W-4 with our W-4 Withholding Calculator, which is updated annually to reflect any tax law changes.
How does this impact my withholding on my paycheck?
Individual tax rates for 2023 and 2024 are 10%, 12%, 22%, 24%, 32%, 35%, and 37%. These rates will be reflected in the amount of federal tax being withheld from your paychecks. The IRS annually updates these individual tax rate brackets as part of the annual inflation adjustments.
When you complete a Form W-4, you allow your employer to withhold federal income tax from your paycheck. Generally, if too little tax is withheld, you will owe tax when you file your taxes. On the other hand, if too much is withheld, you will generally get a refund back.
Each year, federal withholding should be close to your ultimate tax liability so you don’t owe money at tax time.
Do I need to file a new Form W-4 with my employer?
You should file a new Form W-4 with your employer if your personal or financial situation changes or if you start a new job.
Form W-4, Employee’s Withholding Allowance Certificate, is completed and submitted to your employer so they know how much tax to withhold from your pay. A W-4 form takes into account the number of people in your household, tax credits, deductions, other income, and if you have more than one job or you’re a two-income household.
TurboTax W-4 Withholding Calculator will make it easy to see how many withholding allowances you should take to boost your tax refund or your take-home pay, and also includes the W-4 form that you can print out and give to your employer once you have answered all of the questions as they apply to your specific situation.
No matter what moves you made last year, TurboTax will make them count on your taxes. Whether you want to do your taxes yourself or have a TurboTax expert file for you, we’ll make sure you get every dollar you deserve and your biggest possible refund – guaranteed.
