{"id":4332,"date":"2024-10-06T16:01:21","date_gmt":"2024-10-06T16:01:21","guid":{"rendered":"https:\/\/smartspending.ai\/how-to-change-your-tax-withholdings-and-when-to-do-it\/"},"modified":"2024-10-06T21:08:16","modified_gmt":"2024-10-06T21:08:16","slug":"how-to-change-your-tax-withholdings-and-when-to-do-it","status":"publish","type":"post","link":"https:\/\/finderica.com\/?p=4332","title":{"rendered":"How to Change Your Tax Withholdings \u2014 and When to Do It"},"content":{"rendered":"\n
\n

Now that tax season has arrived, you might be wondering whether or not you\u2019ll owe the government money. How much you owe or how much you\u2019ll receive in a refund depends a lot on your tax withholdings from your paychecks during the year.<\/p>\n

You\u2019ve probably been dealing with withholdings since you were first employed, but many people still don\u2019t know what that means. It\u2019s vital to make sure you\u2019re getting the right amount taken out so you\u2019re not surprised by a bill come tax time. And although your employer does the work of collecting the funds, it\u2019s your job to ensure the amounts are right.<\/p>\n

Here\u2019s what you need to know about tax withholdings, including when and how to adjust them.\n<\/p>\n

What Are Tax Withholdings?<\/b><\/h2>\n

Tax withholdings are the wages your employer sets aside for the purpose of paying federal and state income taxes. In short, it\u2019s money you earn that you never see because it\u2019s funneled directly into Uncle Sam\u2019s hands.<\/p>\n

Tax withholdings are determined by IRS Form W-4<\/a>, which you fill out when you start a new job or when you want to adjust your withholdings \u2014 which we\u2019ll get to in just a moment. You can see the exact dollar amount of your tax withholdings on your pay stub each pay period, and you can adjust your withholdings by submitting a new W-4 as often as you wish.<\/p>\n

How Are Tax Withholdings Calculated?\u00a0<\/b><\/h2>\n

Your employer calculates your tax withholdings based on your responses to the W-4 form. The W-4 form was redesigned in 2020 to help people more accurately calculate their federal income tax withholdings. The IRS mandates this new form for new employees, but if it\u2019s been a couple years since you\u2019ve submitted a W-4, your withholding might still be calculated based on the old form.<\/p>\n

\n
\n

7 Ways to Make Money if You Hate People<\/h3>\n

Do you avoid people too? In the past, there was almost no way around working with people if you wanted to earn a living, but things have changed.<\/p>\n

Our team has compiled a list of creative ways<\/a> you can fatten your bank account this month, without having to put up with people.<\/p>\n

Enough small talk. Here are some ways<\/a> to earn extra cash, without all of the social stuff.<\/p>\n<\/div>\n<\/div>\n

If you haven\u2019t updated your W-4 recently, here\u2019s how the W-4 has changed.<\/p>\n

New W-4 Forms 2020<\/h3>\n

The W-4 (Employee\u2019s Withholding Allowance Certificate) was redesigned in 2020 to make it easier to use and to complement the 2018 tax laws.<\/p>\n

The new W-4 Form removes withholding allowances \u2014 so there\u2019s no more calculating 0s and 1s to understand your tax withholding. The new design is divided into five parts, designed for accuracy and ease of use. Here is what you need to provide:<\/p>\n