Form W-4 is a thing that most people forget about. However, it can be a headache at tax time and cost you a lot of money. A W-4 is an employee’s withholding certificate. It indicates how many allowances you can claim. It also allows your employer to withhold the correct federal tax from your pay.
So, why is this a problem? Well, if you have elected for more allowances on your W-4 than is warranted, you may be in for a surprise as the amount of taxes withheld through the year are not enough to offset your tax liability, meaning you owe money!
Make sure you keep your W-4 up to date if you have any changes or allowances within your family. If you need any help or have questions, let us know and we will be more than happy to assist.