When’s the last time you updated your W-4?
If you’ve been at the same employer for some time, chances are, it’s been a while..
As a quick refresher, the W-4 is the IRS form that determines how much federal income tax should be withheld from your pay.
A couple years ago, the IRS revised this form. So, if you haven’t updated it in a while, you may want to consider double-checking that it’s accurate..
Whether you typically receive a refund or owe in April, either outcome could mean the amount you are taxed during the year is inaccurate. And adjusting your W-4 could be the solution.
Gone are the “allowances” section in the most recent version of the W-4, which has been in effect since 2020.
But there’s a section where you can account for factors in your life, such as multiple jobs, children and dependents, and interest earned from savings and investment accounts. You can even enter a specific dollar amount you need withheld from each paycheck.
If you feel like you may need to update the W-4, reach out to your employer (likely your HR department), and consider meeting with a wise, honest tax professional (Proverbs 19:20).
As we continue on our financial discipleship journey, we learn that we should do our best to faithfully apply God’s financial principles in every area of our lives.
What we owe to another we give, and what we owe to the Lord we give (Matthew 22:20-22; Mark 12:14-17). Because we know we serve a mighty God, who holds all the authority in Heaven and earth (Romans 13:1). And through our obedience, He is always faithful to provide for our every need.
P.S. The Building Your Finances God’s Way financial discipleship study teaches what the Bible says about taxes, work, and much more. Click here to register for a small group study to learn how you can continue your financial discipleship journey.