As the year draws to a close, many taxpayers find themselves in a different financial situation than they were in at the start of 2021. Now may be a good time to take a second look at your W-4 and make adjustments if needed.
Remember, a W-4 does not change the amount of taxes that you owe in a given year – that depends on your income and any other taxable events and assets you have. However, appropriate withholdings do ensure that you avoid a nasty surprise in the form of a large balance owed to the IRS.
The IRS has shared a new video summarizing the importance of making sure that your W-4 withholdings are accurate. Click here to watch it on Youtube.
Choosing the best strategy for your unique situation can be difficult. Please give us a call if you would like to discuss the best course of action for you and your family.
For more information check out these resources from the IRS: