The New Year is a Great Time to Review Your Tax Withholding

With the new year comes a sense of starting fresh and making changes. The start of a new year also means one tax year ends while another begins. This provides a great opportunity for you to examine your situation and determine whether or not you need to make changes to your tax withholding. There are many things that may have occurred in your life over the past year that could warrant a change:

• Getting married or divorced.
• Change of jobs or a gain/loss of side income.
• Having a child.
• Buying or selling a home.

These are just a few, but each one of these circumstances can play a big role in your tax situation. So, this is a great time to check your W-4 form with your employer and work through the worksheet or IRS withholding calculator to see if any adjustments need to be made. You want to make sure you're withholding enough, but at the same time make sure you're not giving the IRS a free loan by withholding too much.

Additional tax withholding resources:

• Review Your W-4 Exemptions
• Adjust Your Withholding Using Form W-4
• How to Fill Out Form W-4