Summit CPA's Profit Focused Accounting Blog

Get Your Withholding Tax Right With The Help Of Our Virtual CFO

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In most situations, the tax withheld from your pay will be close to the tax you figure on your return - if you follow these two rules.

• You accurately complete all the Form W-4 worksheets that apply to you.

• You give your employer a new Form W-4 when changes occur.

But because the worksheets and withholding methods do not account for all possible situations, you may not be getting the right amount withheld. This is most likely to happen in the following situations:

• You are married and both you and your spouse work.

• You have more than one job at a time.

• You have non-wage income, such as interest, dividends, alimony, unemployment compensation, or self-employment income.

• You will owe additional amounts with your return, such as self-employment tax.

• Your withholding is based on obsolete Form W-4 information for a substantial part of the year.

• Your earnings are more than $130,000 if you are single or $180,000 if you are married.

• You work only part of the year.

• You change the number of your withholding allowances during the year.

For further assistance with all your financial needs contact us at (260) 497-9761 to speak with our financial avisors.