Do not miss this Tax tip
to plan W4 form effectively!
Do not miss the Tax tip to plan W4 form effectively.The W4 form is an employee withholding allowance certificate, wherein employee acknowledges and allows to deduct the taxes based on the marital status and their number of dependents provided in the form by an employee and also contains basic information like Name, SSN, the address of an employee can be identified by the employer for their records. We recommend that the Taxpayer should complete a new W4 Form every time a major life event takes place such as Marriage, the Birth or adoption of a child or a Spouse getting or losing a Job. These things can have a direct effect on the amount of Tax you owe, so plan your W4 Form accordingly.
Though this might sound a bit odd, it is essential that find out whether or not you need to file taxes. If a tax payer has mentioned your name as dependent on their tax filing and you had a job which fetched you more than $6300 in a financial year, you will have to file for taxes. If you did not have a job yet managed to earn more than $1050 (could be money from investments, interests etc.) you will need to file your taxes. If you do not belong to either of the categories, you technically need not file taxes. But getting into that habit early on will help you for a smoother transition later on.
Get to it quickly
We all know that April 18th is the last day for filing your taxes. But why even wait for the last day? The earlier you file your taxes, the earlier you receive refunds, if any. Even if you do not finish it immediately, getting started with the process will ensure you are a step closer to it. Because the moment you start the process, you will come to know the different documents needed for the process. One might need to do a bit of research for a few sections. Starting early gives you that time freedom to do these things.