Many taxpayers have not yet updated their W-4 withholding form. Have you? This is the form provided by employers to help calculate how much they need to withhold from each of your paychecks to remit to tax agencies. There are two main times when you should consider updating this form:

  • When tax reforms change the withholding tables, such as the tax reform in 2018
  • When you have a life event, such as a divorce or new dependents

This is one of the top financial planning tips accounting professionals offer as it helps to lower your tax liability at the end of the year. Put simply, you won’t have a big lump sum due in April.