Withholding allowances aren’t really a thing anymore. Get step by step guidance on how to fill out the 2021 W4 form here.
States may also have a W-4 equivalent. Employees can change the withholding allowances for their states as well. Not sure if your state has its version of a W-4? The Bureau of Labor Statistics has a list of state withholding forms.
As a reminder, getting your withholding allowance number correct is important. If you withhold too little, you’ll likely owe taxes when you file. If you withhold too much, then you’ll get a refund.
When should I change my withholding allowances?
People typically change their withholding allowances when a life event may change their tax status or deductions. Such qualifying life events may include:
- Getting married;
- Having a child;
- Taking in an elderly parent as a dependant;
- Getting a pay raise or job that pays you more; and
- Getting a second job that pays you more.