Tax Day 2024 and How to Get an Extension from the IRS
Tax Day is on Monday, Apr 15, 2024. Not ready to file? Submit an electronic request to the IRS for an extension ASAP!
How often should you submit a new W-4? What is your filing status? In this article, we break down some of the most common W-4 questions.
Your W-4 form. In many cases, you probably don’t even think about it past your first day of work. But then something happens - you get married, start a new job, have a baby - and you need to take a closer look. That’s when your mind starts scrambling with questions.
Below, you’ll find the top questions we’re asked about the 2023 Federal Form W-4.
This is a federal tax form you fill out for your employer that states how much income tax you want withheld from your paycheck. States have separate withholding forms.
Employers look at your filing status to determine your correct tax filing requirements, standard deductions, and more. You have a few options for your filing status that the IRS breaks down for you.
Yes! Usually, people change their W-4 forms when a significant life event occurs, for example getting married or having a baby.
No, independent contractors do not need to file a W-4. For more information check out, What is the Difference Between a 1099-MISC Contractor and a W-2 Employee?
The old W-4 form (pre-2020) used to ask for just a number of dependents. The new W4 asks for a dollar amount. Here’s how to calculate it.
If your income will be < $200,000 (or $400,000 if married):
# of children under 17 * $2,000
# of other dependents * $500
Add up the total.
If you make more than $200,000 (or $400,000 if married), you will leave this as $0.
In general, the more Deductions you claim, the less federal income tax will be withheld from your paycheck, and increase the amount of your paycheck. If you do not withhold enough income tax you are expected to pay the government what you owe. You may also be forced to pay a penalty.
The more Extra Withholding you claim, the more federal income tax will be withheld from your paycheck, and reduce the amount of your paycheck. If you withhold too much income tax you are entitled to a tax refund.
You can use the W-4 to claim exempt from withholding. This means your employer will not withhold any tax from your paycheck. You may claim exempt if you don’t expect to incur a tax liability for the current year, and did not incur a tax liability in the previous year.
This one is up to you. Normally, you don’t have to fill out a new W-4 unless you change jobs, or a life event happens that will change your filing status or dependents amount.
PaycheckCity’s W-4 Assistant can help you fill out your W-4 with an easy step-by-step wizard.
As an employer, you have your own set of questions regarding Form W-4.
Depending on your employee’s familiarity, the process of completing the form can be confusing or a breeze. Every employee has their own experience and scenario to report on his or her W-4. It’s important to get withholding information as accurate as possible. The W-4 can have a major impact on your employees’ finances and therefore their quality of life.
Below are a few questions you might have when it comes to your employee’s W-4. For more help running payroll and calculating your taxes, try a PaycheckCity Payroll free 14-day trial!
Your employee should fill out another W-4 when a life event, such as a marriage or birth of a child occurs. Your employee can complete a new form when he or she feels like his or her withholding is not accurate.
If you want to help your employees, you have several options. For one, the IRS provides instructions on completing the form. You can also walk your employees through the language used in the W-4. For example, explain allowances, filing status, and dependents.
No problem! Encourage your employees to submit another W-4 reflecting their scenario.
After your employee has completed his or her W-4 make sure to collect it and store in a safe place. Businesses are required to hold on to each employee’s W-4 for up to four years.
Tax Day is on Monday, Apr 15, 2024. Not ready to file? Submit an electronic request to the IRS for an extension ASAP!
IRS has updated tax brackets for 2024. See how this affects your first paycheck this year!
Check out the updated 2024 Federal benefit limits for 401(k), HSA, and simple IRA, and more. Stay informed and plan your finances with confidence!