Should I change my tax withholding information before the end of the year?

Question

I just got married in September and was wondering should my husband and I change our withholding information before the end of the year or wait until the beginning of 2007.

Answer 1

It really would not make much difference now. You only have one pay period left. However you could change it now and have it in place for all of the new year. Think of it as your marriage bonus.

Answer 2

Changing your withholding now will not make a difference on this years taxes.

However, assuming that you are filing a joint tax return, I would wait until after preparing this years tax return to see what your refund (or how much you owe) is. Then adjust your W-4 accordingly. As a general rule, you should claim one exemption on your W-4 for every $2000 in deductions that you expect.

Answer 3

You can complete a new W-4 any time you want. The IRS sets no limits on when or how often. On the other hand, by the time your employer updates their payroll system with the new information, you may have already received your last check for the year anyway.

Answer 4

I'm an accountant...At this late date, it probably won't make much of a difference. However, just so you know, the IRS requires you to have paid at least 90% of you tax liability by December 31 of the tax year. If not, you could be penalized.