You should update our W-4 whenever you experience a major life event or financial change that will impact on your taxes. This ensures you have the correct amount of federal income tax withheld from your paycheck through the year, helping you avoid owing taxes or incurring penalties at the end of the year.

Major life events that could impact your taxes:

• Marital status change: Getting married or getting divorced can place you in a different tax bracket.
• Birth or adoption of a child: Adding a new child can qualify you for tax credits, such as the Child Tax Credit, which can reduce your overall tax burden.
• Home purchase: Buying a home can make you eligible for tax benefits, such as a deduction for mortgage interest.
• Retirement: Entering retirement is a significant lifestyle change that affects your income and tax withholding.



It is good practice to review and update your W-4 at least once a year, especially early in the year. The IRS offers an online tool to help you calculate the correct amount of tax to withhold based on your specific situation. You can also confer with a tax accountant if you have questions on how to fill out your W-4 for your specific tax situation. You can submit a new W-4 to your employer at any time throughout the year.