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W4 Form Tax Withholding

adjust your paycheck withholding

So what does W4 mean?

  • A waffle 4-pack OR
  • A brand of washing machines OR
  • A herd of four warthogs OR
  • A place to enter your dependents on a tax return?

Actually, it is none of those things! It is most likely that the "W" in W4 or W-4 stands for "withhold" or "withholding", (to take out) but we do not know what the "4" means (or why it is there in the first place!).

The W4 is a form that you complete and give to your employer (not the IRS) for federal tax and the equivalent form for state tax withholding. The W-4 communicates to you employer(s) how much federal and/or state tax you - and spouse if s/he works - wish to have withheld from each paycheck in a pay period. Depending on what you enter on your W-4(s) it might affect how big a tax refund might be in for the given tax year - usually filed the year later , or how much tax you will owe, when you file your tax return(s) on Tax Day. The right amount or balanced amount of Tax Withholding per pay period for the tax year is good because it keeps you from paying all your taxes at once when you file your tax return. Too much Tax Withholding will result in a tax refund - some argue it's a form of financially self imposed penalty. Clearly, the trick is to balance your withholding and thus your Tax Return Taxes - so you don't owe nor get a too big of a Tax Refund.

Important: If you do not submit a properly completed W-4 to your employer(s) when you start a new job, the employer will treat you as with the filing status single and will withhold using the standard deduction and no other adjustments. If you are working for the same employer(s) before 2020 your are not required to submit a new 2020 Form W-4. Your form on file with the employer(s) will be used to determine your tax withholding. Tip: When you complete your new 2020 W-4 Form here on you should also estimate your tax return for the given tax year. You can do all this here on with the with PAYucator and/or the WITHHOLDucator. Not factoring in your tax return goals when completing a W-4 form is like driving a car mostly through the rear view mirror.

If you are familiar with all these nerdy type of explanations and are ready to get to the bottom line start here and now:

W-4 Questions, Answers, Myths and Facts

W-4 Question
Why to File a W4?
To balance taxes on the Tax Return.
As a wage earner - with the W-4 Form - you determine the amount of money you ask your employer to take out or withhold from each paycheck or each pay period as Taxes or Tax Withholding. This amount is an important factor on whether you will owe Taxes or get a Tax Refund when you e-File your next Tax Return.
When to File a new or re-File a W-4 with an existing Employer?
New wage earning job. Anytime you want to balance your Taxes.
1. As soon as you start a new wage earning job you will have to submit this form to your employer, not IRS. 
2. Anytime you want to balance your 2019 Taxes due to Life Changing Events. Use the Taxometer and pick a tax balance goal for your 2019 Tax Return due in 2020.
How to calculate or estimate the amount of Taxes to withhold with each paycheck?
1. Start the free 2020 Tax Calculator.
2. Discuss your personal Tax situation with a Taxpert, for free: Contact to an eFile Taxpert now.
To get an accurate estimate you will need to estimate your 2020 Tax Return now. Use the free 2020 W-4 Calculator for this. Simply estimate your income, dependents, deductions and tax credits for 2020 when estimating 2020 Tax Return. Based on these results adjust your paycheck withholding - up or down - for the remaining pay periods in 2020. The new 2020 W-4 Form will no longer have Allowances.
It's about how much of your hard earned money you will get to keep now in 2020 and not to get it back again in 2020, in the form of a Tax Refund. A Tax Refund in 2021 would mean you would give your hard earned money to the IRS during 2020 - through too much Pay Check Tax Withholding - just to get it back in 2021. Wouldn't you want to keep this now and be balanced in 2020? No Refund, no Taxes owed in 2021.
adjust your paycheck withholding
How to complete a W4 between now and the end of 2020.
Contact us now - we have a free, pragmatic workaround for you. No complicated worksheets and no Allowance guessing.
1. Example: Your 2019 Tax Return showed a $1,200 refund and your 2019 income, deduction, etc. situation is not changing.  Take a look at your last pay check, take the tax withholding amount and decrease your withholding by $200 (monthly pay period) or $100 (bi-weekly pay period) between the remaining months of June and December 31, 2020. As a result, you should get a smaller refund in 2020 and not owe taxes but increase, your paycheck per pay period. Do the reverse if you owed taxes on your 2019 tax return. 
How to get a Paycheck workout?
1. This tool will ask simple questions and will help you figure out your tax strategy.
2. Tip: Keep your hard earned money. Don't give it interest free to the IRS and/or State only to get it back as a Tax Refund with your next Tax Return on April 15, 2021. Simply estimate your income, dependents, deductions and tax credits for 2020 and you can estimate your 2020 Tax Return now.
Don't Penalize yourself with a Tax Refund
1. Don't do what too many hard working Tax Payers do. This self imposed penalty could cost you up to 18% a year. Yes, it's self imposed by wrong financial Tax Payer planning - not, not the IRS. Learn more about self imposed penalties.
How to Fill out your W-4?
Click here: and Complete, Sign and Download the 2020 W4. The W-4 is for your Employer not the IRS.
1. Complete, sign, download the W-4 now online here on
2. Mail, email, or hand it over to your employer(s) not the IRS or State agency. Coordinate this effort with your spouse if you are filing as married filing jointly on your next tax return.
3. Identify the State(s) to change your State Tax Withholding form(s) and download the appropriate tax withholding form(s) by State. Follow the same tax balancing strategy as you do for the IRS.
2020 W-4 Form: Release date Jan. 1 of each year.
Click to view new W-4 Form. You will notice on the new W-4 Form that the concept of Allowances to control your paycheck IRS tax withholding has been eliminated. That is indeed good news for all tax payers. Starting Jan. 1, 2020 you can use PAYucator to calculate your IRS Tax Withholding Amount for your paycheck. Plus you can use the WITHHOLDucator to estimate your next return based on your personal Tax Return Goals. We will make it easy for you not only to calculate the amount but also to complete the new W-4 Form. Simply sign up here to TaxPlan, TaxWin and TaxPlay.





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