However, you might worry that the IRS will also tax you at a higher rate and take more money out of your paycheck. You can put your mind at ease and enjoy your promotion and raise by understanding the process of changing to a higher tax bracket.
However, you might worry that the IRS will also tax you at a higher rate and take more money out of your paycheck. You can put your mind at ease and enjoy your promotion and raise by understanding the process of changing to a higher tax bracket.
The changes in your W-4 are reported to the IRS as well as your employer and could help you have less money taken out of your paycheck. They also can influence how much in taxes you pay at the end of the year as well as how much of a refund to which you could be entitled.
If you still have questions about the progressive tax brackets or want to know what kinds of deductions to include on your W-4, you should consult a tax professional before you file taxes. A tax pro will understand how the brackets apply to your income and can advise you on how to change your W-4 as needed at your job.
You no longer have to worry about how a promotion or raise will impact your tax returns. You can accept both with confidence by understanding the implications of changing to a higher tax bracket.