It is more than likely that if there have not been any changes, you will have to continue paying the same amount of money in your tax withholding. However, it is always advisable to use an estimator to check that you are doing it right. It is best to ensure that the amount for your tax withholding matches your personal situation. Otherwise, you might end up having some inconvenience with IRS.
IRS advises workers to check their withholding every single year. There are some special circumstances that affect your tax withholding, so you had better take them into account. Do not forget that when you start a new job, your situation is different. Not only when you quit your job and start a new one, but also when you have a second job. That is you have another paid job.
It might be the case that you have recently been promoted and your salary has increased. Once more, this change will alter your income. Some people may forget that when they get married their financial situation has changed too. As they get married they might have a child or adopt one. This can certainly change your personal situation, so keep them in mind as well.
Does buying a house affect your tax withholding?
Yes, it does. In the event of buying a new house, it is also advisable to check your withholding. This will certainly affect your tax withholding so include that in your checklist. Basically, to sum it up, job-related changes, income changes that are big, getting married, adopting or having a child, and purchasing a house are all the things that may alter your IRS duties.
Some workers may have changed their tax withholding in the middle of the year. If it is your case, you should have a look at your tax withholding at the end of the year. By doing so, you can adjust it if necessary and make use of a new W-4. Bear in mind that your employer can help with it, or even a tax advisor. Some people are reluctant to check their tax withholding though.
As long as you have updated and checked your tax payments, you might not have to pay any penalties or tax bills. Avoiding penalties and unexpected payments is key if you want to have a stable financial situation and keep saving for retirement. If you do it right, you can get more money in your paycheck and the refund will be smaller. So, make the necessary changes to make the most of your money and avoid penalties.