Tuesday Tax Time: Time to Update Your W-4?

July 21, 2009 in Business | 2 comments

IRS Form W-4
Image via Wikipedia

It’s always a good idea to periodically review the Form W-4 you have on file with your employer.  Form W-4 is the form that determines how much income tax your employer will withhold from your paychecks.  Changes in your personal situation, such as a wedding, divorce, or new baby, can affect your tax liability for the year (…and drain your freakin’ bank account).  Make sure your employer is not withholding too much or too little.

A Form W-4 review may be particularly appropriate right now. There have been recent changes in the tax law that may also affect your 2009 tax bill. You may want to adjust your withholding up or down to bring it closer to your revised tax liability.

Let our firm know if you need any additional help.

Thanks, Jason M. Blumer

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  1. Brandan’s avatar

    Brandan on July 21, 2009 at 4:29 pm

    Good point. When Michelle and I first got married, we had no clue about the “marriage penalty” for couples earning over a certain limit. We thought we had run into a huge windfall by getting married, as we paid so much less tax on each paycheck after getting married.

    The nasty surprise came when I did our TurboTax the following April. It was quite a huge amount we had to pay back. Lesson learned!

  2. thriveal’s avatar

    thriveal on July 22, 2009 at 8:33 am

    Those lessons really do hurt, don’t they? But they lay a foundation for new opportunities to consult with others later. Maybe we can help someone NOT do what we did!

    Our pain can be others’ gain.