Consult with a Murfreesboro CPA on matters of overpaying on a tax return

We had a second child in May and we overpaid on our tax return every year. Should we look at making a change to one or both of our allowances on our W-4s?

 

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Rebecca Dempsey Upton, MBA, CPA

If you are unsure of what to do in this situation, your Murfreesboro CPA can help you with these changes.

In this cases, ff you are with the same employer for a long time it is likely that your allowances on your W-4 have not kept up with the changes in your family. Some taxpayers love to get a refund after filing their return, while others would rather put their money to use during the year. If you are married with two children, take a look at your allowances on your current W-4s.

It is likely that you could change your allowances to one, two or three. Also, take into consideration the withholding impact when all household income is considered.  You do not want to end up under withholding.