Is this a good strategy for you?
Reevaluating your payroll withholding at the end of each year
is a good practice that you should consider adopting. If you typically owe a
large amount or have a large refund when filing your taxes, adjusting your
withholdings is especially important. While you may like the idea of receiving
a large tax refund, in reality you’re giving
the government an interest-free loan.
Work with your tax advisor and spouse to determine how
much income you expect to have for the year and consequently how much tax you
may owe. Your tax professional can help you fill out a new Form W-4, Employee’s
Withholding Allowance Certificate, in which you will claim the number of allowances
that correspond with the proper amount of withholding. Afterwards, you’ll need
to give the W-4 to your payroll department. The Form W-4 can be filed at anytime
that makes sense for you and your family.
No comments:
Post a Comment