February 15, 2023 Deadline: File Form W-4 to Reclaim Exemption from Withholding for 2023
ebruary 15th is an important deadline for employees who want to reclaim their exemption from withholding for the 2023 tax year. To do this, they must file a new Form W-4 with their employer. But, why should you file a W-4 Form?
To start a new job: When starting a new job, your employer will typically ask you to complete a W-4 form. The information you provide on the form will be used to determine how much federal income tax should be withheld from your paycheck.
To change your tax withholding: If your personal or financial situation changes, you may need to adjust the number of allowances you claim on your W-4 form. For example, if you get married, have a child, or buy a home, you may want to claim more allowances to ensure that the right amount of tax is being withheld from your paycheck.
To avoid a tax liability: If you do not have enough tax withheld from your paycheck throughout the year, you may owe money when you file your taxes. By claiming the correct number of allowances on your W-4 form, you can help ensure that the right amount of tax is withheld from your paycheck, reducing the likelihood that you will owe money when you file your taxes.
To receive a larger paycheck: If you claim fewer allowances on your W-4 form, more tax will be withheld from your paycheck, leaving you with a smaller paycheck each pay period. However, if you claim more allowances, less tax will be withheld from your paycheck, resulting in a larger paycheck each pay period.
In conclusion, filing a W-4 form is important because it determines how much federal income tax will be withheld from your paycheck. By providing accurate information on the form, you can help ensure that the right amount of tax is withheld, reducing the likelihood of a tax liability and increasing the size of your paycheck.