It’s a serenely sunny Saturday morning. You wake up before your alarm goes off.
You feel well rested and good about the day ahead. As you get to the front door and slide on your slippers, you get that feeling of finding money in the pocket of a jacket you haven’t worn in a while.
You remember your tax refund should be here by today so you gleefully head out to the mailbox. When you rip open the envelope, your stomach drops a little. You OWE money.
If you’re still wondering how to change tax withholding from your paycheck so you don’t end up owing money at the end of the year, this article is for you.
How Did This Happen?
Because of the Tax Cuts and Jobs Act of 2017, many employees seemed to get a pay bump. But if you don’t know how to calculate your federal withholding allowance you could end up paying that money back and then some.
How to Change Tax Withholding so You Don’t Get Penalized
Any changes to your tax withholdings need to be submitted in a new W-4 form. Your W-4 is a tax form that tells your employer how much of your pay to set aside for taxes. Changing the number of allowances allows you to increase or decrease your withholdings.
This is where a tax exemption calculator comes in handy. Calculating how much tax is deducted from a paycheck doesn’t have to be hard.
The IRS’s official withholding calculator makes it super easy with a series of simple to answer questions. You want to stick to the minimum tax withholding you need so you don’t have to plunk down any extra money.
Federal tax withholding is a pain but fortunately, the IRS tries to make it as easy as possible to get your taxes right.
“What If I Threw Away My Old Paystubs?”
With all the paperwork you need to do for your taxes, keeping your paystubs in order can be a real pain. It sucks when you lose one or two that you need for reference.
The PayStubs pay stub generator lets you print out paystubs at the push of a button. All you have to do is put in your company’s name, work schedule, and salary. Never worry about losing a pay stub again!
Only Pay What You Have To
So this year you’ll know how to change tax withholding from your paycheck so you’ll get a refund instead of owing.
Paying tax penalties always feels like such a waste. You don’t get to enjoy spending the money and you still have to pay your regular taxes on top of it.
Why bother saving on taxes if you get scammed right after getting your refund? In just 5 minutes, you could be better prepared to protect yourself from email phishing scams. Simply read this article to keep yourself and your bank account safe! You’re just moments away from knowing how to protect yourself from phishing scams. Read now before you open your next email attachment.