Confusion over whether the form would be revised before the first filing season under the new tax law kept many taxpayers from checking and adjusting their withholding rates, tax professionals have said.
The IRS is encouraging all workers to check their withholding using an online calculator so they aren’t surprised next year with their refund size.
Taxpayers should increase their withholding if they have multiple jobs or if they and their spouse are both employed, according to the Treasury fact sheet. People can reduce their withholding if they are eligible for tax credits and deductions, such as the child tax credit, the sheet said.
This year, the average refund was about 1.7% less than last year. In total, about the IRS sent out about $7.5 billion less in refunds this year, according to agency data from earlier this month.
W-4s can be changed throughout the year and re-submitted to employers to reflect unexpected changes in income, or life events such as the birth of a child or a marriage.
--With assistance from Michael Trimarchi and Michael Baer.
This article was provided by Bloomberg News.