Completing Your W4

Now is the time of year you may be worrying about whether or not you had enough taxes taken out so that you won’t owe at tax time. Most tax payers have no idea how much they need to withhold. Several factors affect how many exemptions you should claim on your W4.

• If you work more than one job
• If you are married and file jointly
• Whether or not you itemized deductions
• If you are single with a child and can file Head of Household.

There may be others too. If you have had a change in circumstances since last year, you may need to change your W4 to avoid having either too much or too little taken out. Having too little taken out could cause you to have a balance due that you could not pay by April 15. If balances due are not paid by the due date, you will incur a failure to file penalty. If you have way too much taken out, you are giving the government an interest fee loan.

The simplest way to determine how many exemptions is to follow the link for the withholding calculator. Just answer a few questions and the calculator will tell you how many exemptions to claim. If you still need assistance, a tax professional such as an Enrolled Agent who can assist you in determining the right amount of exemptions for your situation.