A W-4 is a crucial income tax document that people complete after being hired for a new job, which determines how much money is withheld from their paycheck every month—and, ultimately, whether they owe the IRS or receive a refund during tax season. However, for those who’ve experienced a change in their life that affects their filing status or were unsatisfied with the results of last year’s taxes, there is always the option to update it. The guide below explains more about this form so you can fill it out or alter it correctly.

How Do I Fill Out a W-4 Form?

W-4s require you to supply basic information on yourself, including your name, marital status, social security number, and home address. You’ll also need to specify your allowances, which can be a bit trickier. Allowances effectively lower the amount of income tax withheld and are awarded based on whether you meet certain life criteria—for example, if you are married, have children, or are the declared head of household.

How Many Income Tax Allowances Should I Claim?

While the idea of a nice refund in April is something to look forward to, most people generally prefer that the money was never taken out of their paychecks in the first place. Therefore, they would try to increase the number of allowances noted on their W-4. Alternatively, if you owed the IRS money, you claimed too many allowances in the previous year. For example, your status may still be marked as married after a divorce. Therefore, ask a member of your Human Resources team if you can review this paperwork.

While Master Finance is primarily known as a reliable loan provider in San Marcos, TX, they can also assist you with tax preparation. If you’re not sure whether you’re withholding enough income tax from your pay, they’ll look over your return and offer advice on how to improve it. For those who do need a personal loan, they offer a range of options with favorable terms and monthly payments to ensure your finances remain in good standing. Schedule a tax consultation today by calling (512) 392-6102. Visit the website to review some of their frequently asked questions.