Time to adjust your payroll withholding

November 16, 2011

The end of the tax year is coming up and if your withholding amount is off, you should submit a new W-4 now.

Yes, as with last week's tax refund tracking Weekly Tax Tip, this week's tip is a repeat. Back in February, I suggested everyone evaluate their withholding as one of that month's daily tax tips.

But there's no limit on how often you can change your withholding.

Well, there's no limit by the IRS. Your payroll office might have other ideas, but that's between you and those folks.

All kidding aside, if your withholding is too large or too little, you'll either owe a big tax bill when you file your return or get back a big tax refund.

Owing the IRS obviously is not good.

Our tax system is pay as you earn and if your payroll withholding is substantially smaller than it should be, the IRS could hit you with an underwithholding penalty and interest on the taxes you didn't pay throughout the year.

The overwithholding is not such a big problem as long as you don't mind Uncle Sam instead of you having access to your hard-earned dollars for the tax year.

In either case, all it takes is filling out an accurate W-4 and giving it to your payroll office. And there's still enough time left in the year to make a difference.

The W-4 has an attached worksheet.

If you prefer, the IRS has on online withholding calculator to help you come up with the correct amount to be taken out each paycheck.

And married couples, be sure y'all coordinate your separate withholding amounts, too.

Take it from this long-time Sadie, Sadie married lady, when what you owe the IRS is correct, it makes for added wedded bliss at tax time!

You also might find these items of interest:

Share:

The More Tax Posts tab at the top of this page will take you to, well, more tax posts. You also can search below for a tax topic. 

Latest Posts
New direct deposit rule delays tax refunds for 830,000 taxpayers

March 10, 2026

An executive order mandating Uncle Sam primarily make electronic financial transactions has caused tax refund…

Read More
Hello Tax Season 2026

Happy New Tax Year! Are you ready to file your 2025 tax return? I know, too early to ask. But Tax Day 2026 will be here before we realize it. The Internal Revenue Service deadline to file and pay any tax we owe is the regular April 15 date this year. It’s also Tax Day for most of the states that collect income taxes from their residents, which is most of the states! If that seems too far away right now, don’t worry. As is the case every tax season, the ol’ blog’s tips and other tax reminders should help all of us meet our state and federal responsibilities. Procrastinators also will want to keep an eye on the countdown clock just below. It tracks how much time we have until April’s Tax Day, just in case we put off our annual tax task until the absolutely final hours and decide we need to instead get an extension request into the IRS by that date. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

Comments
Leave the first comment