Check Your Tax Withholding

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Check Your Tax Withholding

Check Your Tax Withholding

2024-07-22

A taxpayer's filing status determines its options during year-end tax filing. Take the time to notify the Social Security Administration of any name changes completing Form SS-5 and to request a new Social Security Card. Additionally, you must report any address changes to your employers on Form W-4 and to the IRS using Form 8822.

Taxpayers must submit a new Form W-4 to their employers within 10 days of their marriage or following the birth of a child. If both spouses work, they may move to a higher tax bracket or be subject to additional FICA taxes.

Form W-4 is divided into 5 steps, but there are only two steps required for all employees: Step 1, where personal information (name and marital status) is entered, and Step 5, where the form is signed. Step 2-4 lists different options that you can choose from to make the necessary retention adjustments. Keep in mind that you must provide a Form W-4 for all your jobs. Doing so will make your withholding more accurately match your tax liability. If you don't make these adjustments, you'll likely owe additional tax when you file your tax return or might incur in interest and penalties.

Taxpayers are required to make quarterly estimated tax payments to avoid any tax liability when filing their tax return when reporting income from other sources like the ones reported on 1099 forms. Income reported on 1099 forms include non-wage income from unemployment, self-employment, annuity income, gig economy, or digital assets.

Keep in mind that tax rates increase as income increases, and it's only possible to claim one standard deduction on each tax return, regardless of the number of jobs at home. If you have more than one job at a time or are married filing jointly and both you and your spouse work, a higher amount must be withheld from the combined household income.

Remember that you can check your account with the IRS online if you need information, to get copies of previous tax returns or have received notices or letters from the IRS.

Be aware that the IRS will never contact you via email, phone calls, social media, or text messages. If you are contacted by any of these means, it is most likely a tax scam.