Paycheck Withholding Adjustment
Most people pay their income taxes through paycheck withholding. If you have taxes withheld from your pay, then a percentage of every paycheck is sent by your employer to the IRS to be credited against your tax bill for the year. If you end up with a tax refund, it might be because you had too much tax withheld. A tax bill means you had too little tax withheld.
Why Adjust Your Paycheck Withholding?
Tired of waiting for your tax refund to arrive? You don't have to wait until next year to get this refund money. You can adjust your paycheck tax withholding and get some of your refund money every time you get paid. Find out below how to claim the right number of allowances and adjust your paycheck so you get your tax refund money every time you get paid.
A tax refund is a good thing when the money comes from tax credits and deductions, but not as good when it comes from having too much tax withheld from your pay (unless you want to make an interest-free loan to the government).
If you have too little tax withheld from your pay, you could end up owing taxes when you file your return.
If you have too much tax withheld from pay, you will have to wait for your tax refund to get your hands on money that is already yours.
To make sure you are having the right amount of tax withheld from your pay, you can adjust your withholding allowances.
How to Adjust Your Paycheck Withholding
You can adjust your paycheck withholding in 2 easy steps:
Use the paycheck withholding calculator to find out what your paycheck withholding allowances should be:
Try the FREE Tax Withholding Calculator
Use the results to fill out a new Form W-4 with the right number of allowances, then give it to your employer.
When Should You Adjust Your Paycheck Withholding?
There are certain times when it is a good idea to use a withholding calculator to see if you need to adjust your income tax withholding. Major life events can affect the number of allowances you decide to claim on your W-4. Some examples:
Marriage (or divorce)
Birth of a child
Major financial gain
If you have never used a withholding calculator
Whatever your life situation, efile.com offers a safe, easy way to prepare and efile your taxes.