IRS Form W4: for new hires and every time your tax situation changes.
What is form W-4?
IRS Form W4 helps employers to withhold the correct amount of federal income tax from your pay. At the end of the tax year, the withheld funds will be released to the IRS. Then, depending on your individual tax return information to the IRS, you will either receive a refund from the IRS or have the opportunity to pay any extra taxes.
Who needs form W-4?
Businesses with employees need form W-4 in order to take the right amount of federal taxes out of their pay. Employees will need a new Form W-4 each year, or when their personal or financial situation changes. For example, if you have a child during the year you will want to fill out a new W-4 to account for the child as a dependent.
What other forms accompany form W-4?
There are only special cases where you will need to fill out additional forms. For example, if you have a lot of interest or dividends, you may want to fill out Form 1040-ES to estimate your taxes.
How do I fill out form W-4?
The W4 form is fairly simple and straightforward to fill out for yourself. If you require assistance, you can usually ask your company’s HR department. Be careful that you have double checked all of your information is correct and complete on the form. Otherwise, you may end up owing additional income tax at the end of the year.
For more information on filling form W4, you can also check out the following video:
When is form W-4 due?
IRS form W-4 is due to be filled out when you are first hired by a company, and every time your tax situation changes. While it is not required that you fill out the form every tax year, it is still a good idea because often times your tax situation will have changed.
Where do I send form W-4?
In the past, employers sent their W4 forms to the IRS. This is no longer the case. Forms should simply be kept on file for the IRS to review if necessary. They are mostly used by businesses to calculate the correct tax withholding amount.
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