Why would I change my paycheck withholding?

Modified on Thu, 25 Jan 2024 at 02:55 AM

It’s common to have money withheld from paychecks in order to pay taxes. Usually, the amount of withholding is determined by a W-4 form that you fill out based on your current tax situation. Your employer then withholds those amounts to pay income taxes on your behalf.

 

However, the amount of income taxes you may owe can change based on various life events (such as periods of unemployment, getting additional jobs, becoming married or divorced, claiming dependents, etc). This means that you might be withholding too much or too little from your paychecks to cover your taxes. Withholding too little means you may owe taxes when you file your return, and withholding too much means you’ve essentially overpaid the government and may be owed a refund when you file.

 

Keeping your W-4 up-to-date can help ensure your federal withholding is accurate. This can help you avoid withholding too much or too little.

 

This content is provided for informational purposes only and should not be construed as tax, legal, financial, accounting, or other advice. Rules and regulations vary by location and are subject to change, so please consult with an expert if you need advice specific to you.

 

Any third-party links are provided for informational purposes only. The third parties and their sites are not endorsed by Beem and Beem is not responsible for, and has no control over, their content, privacy policies, or terms of service.

Was this article helpful?

That’s Great!

Thank you for your feedback

Sorry! We couldn't be helpful

Thank you for your feedback

Let us know how can we improve this article!

Select atleast one of the reasons
CAPTCHA verification is required.

Feedback sent

We appreciate your effort and will try to fix the article