Whether you’re a sole proprietor, or a W-2 employee, at The Nichols Accounting Group, we guide our clients through a full range of tax planning and preparation decisions with strategies that minimize your tax liabilities, maximize your cash flow and keep you on track to your financial goals. Our expertise, experience, analysis and thorough research allow us to optimize financial opportunities to be found in existing, as well as recently altered tax laws. We are knowledgeable and up to date on the tax laws.
Click here for recommendations on how to calculate your W-4 withholdings.
How to Adjust your W-4?
To make changes to your W-4, see your company’s benefits department, or download a W-4 form from the IRS. You can also allow for deductions you take every year – such as mortgage interest, property taxes, and charitable giving – if you itemize. Increasing allowances will leave more in your paycheck, while decreasing allowances will withhold more.
When Should You Adjust Your W-4 Withholdings?
There is no limit on how often you can adjust your withholding, so complete a new W-4 if your life changes in a way that will affect your income taxes, such as:
- Starting a new job
- Having a baby
- Getting married or divorced
- Buying a new home