Best Accountants in Santee, CA

What's a W-4 and why should I pay attention to it? Every time you earn income, you'll most likely owe income taxes. How much your employer sets aside to pay on your behalf is determined by the information you submit on your Form W-4. When you have too much money withheld from your paychecks, you end up giving Uncle Sam an interest-free loan (and getting a tax refund). On the other hand, having too little withheld from your paychecks could mean an unexpected tax bill or even a penalty for underpayment. The key to paying the right amount of tax is to update your W-4 regularly. Do this whenever you have a major personal life change. The goal is to reduce the potential for a tax bill and have a tax refund at zero or close to it. If you count on a big tax refund every year, you should also pay attention to your withholding because how much you have withheld directly impacts your refund. Some life events result in more taxes, while others entitle you to credits and deductions that lower your taxes. The list of these events is long, but here are 5 of the most common reasons to revisit your W-4 withholding. 𝙉𝙚𝙭𝙩-𝙂𝙚𝙣 𝘼𝙘𝙘𝙤𝙪𝙣𝙩𝙖𝙣𝙩𝙨 𝑾𝑾𝑾.𝑻𝑹𝑨𝑿𝑿𝑨𝑪𝑪𝑶𝑼𝑵𝑻𝑰𝑵𝑮.𝑪𝑶𝑴...