Celebrate the End of Tax Season by Reviewing Your Form W-4!

Another tax season is in the books! 🎉 If you’ve filed your 2024 personal income taxes, take a moment to celebrate checking that big task off your list. But once the confetti settles, it’s time for one more smart move — reviewing and potentially adjusting your Form W-4.

If your refund was bigger than expected (or if you owed more than you’d like), now is the perfect time to make changes to ensure your payroll withholdings line up with your actual tax liability for 2025.

Why Adjusting Your Form W-4 Matters

Your Form W-4 tells your employer how much federal income tax to withhold from your paycheck. If your withholdings are off, you could end up with a large refund (essentially giving the IRS an interest-free loan) or a surprise tax bill come next April.

Common reasons to revisit your W-4 include:

✔ A big refund or a tax bill this year

✔ Life changes (marriage, divorce, new dependents)

✔ Multiple jobs or income sources

✔ Changes in deductions or credits (like mortgage interest or childcare expenses)

How to Review and Update Your W-4

The IRS offers a Tax Withholding Estimator on its website to help employees make informed adjustments.

Payroll professionals should encourage employees to:

✅ Gather their most recent pay stubs and 2024 tax return

✅ Use the IRS estimator to determine appropriate withholding

✅ Submit a new Form W-4 to HR or payroll if changes are needed

For Payroll Teams: Reminders and Best Practices

As payroll professionals, tax season is also a great time to remind employees of these key points:

✔ Communicate proactively — Share reminders about using the IRS Tax Withholding Estimator and how to submit a new W-4.

✔ Provide resources — Offer FAQs or step-by-step guides for completing the W-4. ✔ Plan for mid-year check-ins — Suggest employees revisit their withholdings if their financial or family situations change later in the year.

✔ Ensure timely updates — Process new W-4 forms promptly to reflect withholding changes in upcoming payroll cycles.

Conclusion

Filing your taxes is a major milestone — but optimizing your payroll withholdings ensures you’re set up for success next year, too. Whether you're an employee looking to fine-tune your tax situation or a payroll professional supporting your team, now’s the time to make adjustments and avoid surprises in 2025.

Congrats on making it through tax season! 🎉 Now, let’s make those paychecks work smarter.

Thank you for following this 10-week payroll series — Stay tuned for more practical payroll insights at www.wagescreek.com/blog!