W-4 Tax Withholding Taxercises

W-4 Form
Taxometer

The IRS is currently preparing a new W-4 Tax Witholding Form for January 2020. For any paycheck tax witholdings during Tax Year 2019 eFile.com has prepared the W-4 easy form. You should not have to complete a complicated worksheet but rather use the eFile.com free 2019 tax calculator to determine the number of Allowances for the W-4 form. More on this later.

The current 2019 W-4 Form requires you to enter a number of Allowances - not to be confused with number of Dependents. Allowances will go away in 2020 and you will be asked to enter a Dollar amount of Taxes to be withheld each pay period. During this W-4 Form transition, we at eFile.com work for you and we want you to keep as much of your hard earned money now via your paycheck. As a result please ask yourself which of the following 2019 Tax Return and Paycheck Goals you would like to pursue now. 

Taxometer: Tax Balance Goals, Steps to Take

Below are simple to follow considerations when planning the number of Allowances for your 2019 W-4 Form(s) so you meet your 2019 Tax Return goals in 2020.

  • Step 1: Did you file a 2018 Tax Return in 2019? If so, review this return now. If you e-Filed through eFile.com, your return is stored under My Account - sign in now. If you did not file via eFile.com or don't have a copy of your Tax Return, you can order a transcript or copy of your 2018 Tax Return.
  • Step 2: Decide on your 2019 Tax goals based on past Tax Return(s). If you never filed a return, ask yourself the Tax Balance questions as listed below or contact one of the eFile.com Taxpert for a free discussion.
    • If you received a 2018 Tax Refund in 2019 select the goal : Decrease your 2019 Return Refund in 2020.
    • If you owed Taxes with your 2018 Tax Return select the goal: Decrease your 2019 Taxes Due in 2020.
    • If you didn't get a Tax Refund nor owed Taxes with your 2018 Return select the goal: Keep Your W-4 Number of Allowances in 2019 the same as in 2018.
  • Step 3: Use the free 2019 W-4 Tax Withholding Calculator and estimate your 2019 Tax Return, now.
  • Step 4: Complete the Tax Year 2019 Easy W-4 Form accordingly and submit it to your employer(s) once you have determined the right number of Allowances that meets your 2019 Tax Return goals.
  • Step 5: Contact a eFile.com Taxpert to discuss your 2019 Tax Strategy.
adjust your paycheck withholding

2019 W-4 Allowances Goals, Adjustments

2019 Tax Return
Adjustment
Paycheck, 2019 Tax Return Effects due in 2020
Goal: Decrease your 2019 Return Refund in 2020.
Action: Decrease Your W-4 Number of Allowances by one. Contact us for your exact details.
Result: Your net Paycheck will increase now. What you do not know is whether you will actually decrease your Refund or owe Taxes when you eFile your 2019 Tax Return in 2020. Find out now before you submit your W-4 to your employer and estimate your 2019 Return now: Start the free 2019 W-4 Tax Calculator. If it shows a Tax Refund, increase your W-4 Allowances now. If it shows Taxes owed, decrease your W-4 Allowances now.
Goal: Increase your 2019 Return Refund in 2020
Action: Increase Your W-4 Number of Allowances now by one. Contact us for your exact details.
Result: Your net Paycheck will decrease now. What you do not know is whether you will actually get a Refund or owe Taxes when you eFile your 2019 Tax Return in 2020. Find out now before you submit your W-4 to your employer and estimate your 2019 Return now: Start the free 2019 Tax Withholding Calculator. If it shows a Tax Refund, increase your W-4 Allowances now. If it shows Taxes owed, decrease your W-4 Allowances now.
Goal: Decrease or Eliminate Taxes owed in 2020
Action: Decrease Your W-4 Number of Allowances at least by one. Optionally, on your W-4 add a Dollar Amount of Taxes to be withheld per pay period. Contact us for your exact details.
Result: Your net Paycheck will decrease. What you do not know is if the Allowance adjustment will result in your goal not to owe Taxes in 2020. Find out now before you submit your W-4 to your employer and estimate your 2019 Return now: Start the free 2019 W-4 Tax Withholding Calculator. If it shows Taxes owed decrease your W-4 Allowances now. If it shows a Tax Refund, increase your W-4 Allowances now. Do this cycle until you are happy with the expected results of no refund and no taxes owed or any other tax balance goal listed here.
Goal: No Tax Refund, No Taxes Due in 2020
Action: Keep Your W-4 Number of Allowances the same.
Result: Your net Paycheck might increase or decrease. What you do not know is if the Allowance adjustment will result in your goal not to owe Taxes nor to expect a Tax Refund when you eFile your 2019 Tax Return in 2020. Find out now before you submit your W-4 to your employer and estimate your 2019 Return now: Start the free 2019 W-4 Tax Calculator. If it shows a Tax Refund, increase your W-4 Allowances now. If it shows Taxes owed, decrease your W-4 Allowances now. Do this cycle until you are happy with the expected results.
Goal: Self Imposed Tax Refund Penalty! What is this?
Action: Read on and run the numbers if you had a Refund this year or expect one next year. Contact us for more details.
Result: Yes, you will penalize yourself financially with a Tax Refund in 2020. Period. Of course, you might have other reasons to get this refund, as in: - I'm so used to get my Refund, I know it doesn't make financially any sense. Or, I don't have self discipline, a tax refund is a way to save and so on. We get it, there is always a reason not to do something :)!  However, we are here to help you with the cold, hard numbers at the tune of 18% per year: Find out if you suffer under a self imposed Tax Penalty Syndome?