Understanding Your Tax Withholding
Charles Schwab2024-02-06
schwab#withholding tax#withholding#tax withholding#withholding tax explained#w4 withholding#expanded withholding tax#federal withholding tax#final withholding tax#federal income tax withholding#federal income withholding tax#withholding taxes#expanded#understanding your paycheck#income tax
1K views|5 months ago
💫 Short Summary
The video discusses the importance of adjusting tax withholding to avoid overpaying or owing penalties. It recommends periodic paycheck checkups to ensure withholding aligns with changes in income or family status. The focus should be on covering tax bills rather than receiving a large refund. Regularly checking withholding using IRS tools or consulting a tax professional is advised to stay on track.
✨ Highlights
📊 Transcript
✦
Importance of Withholding in Tax Refunds and Payments
00:22The IRS suggests regular paycheck checkups to adjust withholding based on changes in employment, income, or family situation.
Over-withholding results in interest-free loans to the government, while under-withholding can lead to penalties.
It is recommended to aim for withholding just enough to cover tax bills or owe a small amount during tax season.
Focus should be on total taxes due rather than the refund amount, and regularly checking withholding using IRS tools or consulting with a tax professional is advised.
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