LOS ANGELES, Calif. (FOX 11) - Would you like a bigger paycheck? Starting this month, it's time to tweak your tax forms to make the most out of the new tax code changes.
Rebecca Walser, a tax attorney and author of "Wealth Unbroken: Growing Wealth Uninterrupted By Market Crashes, Taxes, And Even Death" joined us on Good Day LA with tips to help you increase your income.
• Why are new w4’s being sent out? What’s changing?
The new w4 forms that reflect the new tax code should be coming in February, and since the law has completely changed the way withholdings are done the form is being completely revamped. The old way of calculating withholdings has been made completely moot under the new law as there is no deductions based on the number of personal exemptions – as those have been eliminated. The entire formula for withholdings has changed – thus the reason the IRS has to change the form.
• Does everyone have to fill them out? Or will their old one suffice?
Once the IRS determines how to compute the new withholdings under the law – they will let us know which groups of people are unaffected and do not need to re-complete the w-4. However, based on the way the new law works, it’s good for everyone to expect that they will need to recomplete the form in February – through their HR department.
• Will they be mailed to them? When?
The forms will not be mailed but will be distributed through your company – much like when you first started your job. If your employer does not give you updated form by the end of February it would be best to contact your HR department directly.
If you want to learn more, Rebecca will be at the Beverly Wilshire Hotel at 6:30 p.m. on Feb. 21.
Rebecca Walser J.D., C.F.P., is a graduate of the #1 tax law school in the country, New York University, and she’s the President of Walser Wealth Management. Rebecca is a practicing tax attorney and financial advisor who helps individuals, families, and businesses better manage their finances, save for retirement, and get out of debt. Rebecca earned her undergraduate degree in Finance and is a Certified Financial Planner with 15 years’ experience.