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Review Your W-4

Are you banking on a tax refund this year? Maybe you should review your W4 and adjust your withholdings.

If you earn an income, you probably pay taxes. Now we don’t like them, but it helps to remember that there’s no authority except from God, and those which exist are established by God. 

Withholding too much from paychecks causes tax refunds that could be put to better use. Not withholding enough results in a tax bill or even a penalty.

Adjust the withholding from your paycheck, or if you’re self-employed, adjust your quarterly estimated payments to get as close to a zero-tax refund as possible.

Any changes in household income affects taxes. If married, combine your income to figure the allowances. One spouse can claim them all, or they can be divided between W-4s. 

Update your W-4 regularly and anytime there’s a major life change. Marriage or divorce, job loss or unemployment require adjustments, as well as births or adoptions.

You can adjust on paper, or electronically through the IRS Tax Withholding website. There are W-4 Withholding Calculators online that will help you determine your allowances.

And if you discover your current withholding is different from what the calculator states, then go to your employer and fill out a new W-4. The earlier in the year you do this, the greater the impact on your taxes.

A tax refund is in effect an interest-free loan that you made to the government. Think about how you could better manage that money and adjust your W-4 today!

And if you’re counting on a tax refund to pay off your credit card debt, get in touch with Christian Credit Counselors. You can learn more at or call the Crown Help Line at 800-722-1976.