Income Changed? Change Your Tax Withholding

Change Your Tax Withholding

as Your Income Changes

The IRS is encouraging people to review their tax witholding ASAP

COVID has changed many of our income levels. The IRS has a withholding estimator that can help you determine if you need to resubmit the W-4, a form that impacts what level of taxes your paychecks remove. If changes are needed, the IRS has a document you can fill out and turn into your employer.

The IRS also recommends a W-4 review annually for people:

  • who are part of two-income families
  • working two or more jobs or who only work for part of the year
  • with children who claim credits such as the child tax credit
  • with older dependents, including children age 17 or older
  • who itemized deductions on their 2019 tax return
  • with high incomes and more complex tax returns
  • with large tax refunds or large tax bills for 2019
  • who received unemployment at any time during the year

 

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