Consistently Overpaying In Taxes?

While it’s certainly better to overpay your taxes than underpay them, if you find that you’re consistently and significantly overpaying in taxes and your primary income comes from W-2 wages, it may be a good idea to revisit your Form W-4.

Changes occur over time, but you may not have considered updating/adjusting your Form W-4 withholding to compensate for those changes. As such, your withholding may no longer align with your current situation. Updating/adjusting your Form W-4 withholding may be the answer.

Granted, who wouldn’t like getting a big refund at tax time?

But sometimes it’s better to have that cash on hand than wait until tax time.

As always, consult with a reputable CPA or tax professional for guidance on your tax situation and to avoid over-adjusting your tax withholding.