Visit your HR Department and heck your W-4 form now and avoid a 2021 income tax surprise later. Most Americans haven't seen a W-4 form since the day they started their job. And many were surprised by the lack of tax refund. Doug Hord of My Tax Guy in Houston says the W-4 changed for the 2020 tax year. "The goal here is to get all earners who earn less than $200,000 to receive results on their tax return as close to $0 as possible. The IRS is not looking to give refunds or have you owe money." Hord explains you could be projecting extra income and deductions. "There's very little wiggle room now. It's almost as if you're filling out a tax return for the year coming up."
The form changed for the 2020 tax year and most Americans weren't aware of the differences in the form. Hord says you'll be projecting 2021 sources of income as well as itemizing your deductions. "You're basically re-calculating what your 2021 return is going to look like on your new W-r form. Then you r tax withholdings will be based on that."