Infobrief

Tag: IRS

  • How to Fill Out Form W-4 So You Do Not Owe Taxes in April

    How to Fill Out Form W-4 So You Do Not Owe Taxes in April

    Quick answer: Form W-4 tells your employer how much federal tax to withhold from each paycheck. The current version has no allowances and no exemptions. If you have one job and take the standard deduction, you complete Step 1 and Step 5 and skip the rest. Everything else on the form exists for three situations: multiple jobs or a working spouse, dependents, and other income or deductions. The fastest way to get it right is the IRS Tax Withholding Estimator at irs.gov.

    Key Takeaways

    • The current W-4 has no allowances; advice about “claiming two” refers to a form retired in 2020
    • One job and standard deduction? Complete only Step 1 and Step 5
    • Step 2 is where most errors happen: each job withholds as if it is your only income
    • Complete Steps 3 and 4 on one W-4 only, normally the highest-paying job
    • To fix a mid-year shortfall, divide it by remaining paychecks and enter that on line 4(c)

    Extra Withholding Calculator (Line 4c)

    If you are on track to owe in April, this shows the dollar amount to enter on line 4(c) so the shortfall is covered by year-end.

    This is arithmetic on the number you supply, not a tax projection. Get your shortfall estimate from the IRS Tax Withholding Estimator or last year’s return, then use this to convert it into a per-paycheck amount. Submit a fresh W-4 in January without the extra amount, or you will over-withhold next year.

    Why the form changed and why old advice is wrong

    If someone tells you to “claim two allowances,” they are describing a form that no longer exists. The IRS redesigned the W-4 in 2020 to remove withholding allowances entirely, because the concept was tied to personal exemptions that the 2017 tax law eliminated.

    The replacement asks for dollar amounts rather than a count. Instead of translating your situation into a number of allowances and letting a table do the work, you now enter estimated dependent credits, other income, and deductions directly. The result is more accurate for most people but confusing for anyone applying old rules of thumb.

    You are not required to submit a new W-4 just because the form changed. Your employer continues using whatever is on file. But if your withholding has been wrong, or your life has changed, filing a new one is the only way to fix it.

    The five steps, and which ones apply to you

    Step 1: Personal information and filing status. Everyone completes this. Your filing status here should match what you will use on your return.

    Step 2: Multiple jobs or spouse works. This is where most withholding errors originate. Each job withholds as though it is your only income, so two jobs each withholding correctly in isolation will together withhold too little. Complete this step if you hold more than one job or file jointly with a working spouse.

    Step 3: Claim dependents. Multiply qualifying children under 17 by the child tax credit amount and other dependents by the credit for other dependents, then enter the total. This reduces withholding.

    Step 4: Other adjustments. Optional. Line 4(a) is other income not from jobs, such as interest, dividends, or retirement income, and increases withholding. Line 4(b) is deductions beyond the standard deduction and decreases it. Line 4(c) is extra withholding per paycheck, a flat dollar amount, and is the simplest lever for fine-tuning.

    Step 5: Sign. The form is not valid unsigned.

    Handling multiple jobs without overcomplicating it

    Step 2 offers three methods, and choosing among them causes needless difficulty.

    The estimator at irs.gov is the most accurate and takes about ten minutes with recent pay stubs in hand. Use it if the amounts matter to you.

    The multiple jobs worksheet on page 3 produces a similar result on paper.

    The checkbox in Step 2(c) is the simplest option: if there are exactly two jobs in the household with roughly similar pay, check the box on both W-4s. It is less precise than the other methods but far better than leaving Step 2 blank, which is what most people do.

    One rule applies regardless of method: complete Steps 3 and 4 on only one W-4, normally the highest-paying job. Claiming dependents on both jobs is a common error that produces a large April bill.

    Situations that reliably produce a surprise bill

    • A spouse started working mid-year and neither W-4 was updated
    • A second job or significant freelance income with nothing entered on line 4(a)
    • A large bonus, which is often withheld at a flat supplemental rate lower than your actual marginal rate
    • Investment or retirement income with no withholding at source
    • A child turning 17, which changes the credit and therefore Step 3
    • Marriage or divorce without updating filing status

    The IRS recommends a withholding checkup whenever any of these occur, rather than waiting until filing season to discover the result.

    Adjusting mid-year, and the math that catches people

    A W-4 change applies only to future paychecks. If you discover in October that you are $1,200 short, that amount must be withheld across the remaining pay periods, not spread across the year. With four paychecks left, that is $300 each, entered on line 4(c).

    The general formula: divide the shortfall by the number of paychecks remaining in the year and enter that figure as extra withholding. Then submit a fresh W-4 in January without the extra amount, otherwise you will over-withhold for the following year.

    Some people deliberately over-withhold to force a refund. That works, though it is an interest-free loan to the government. The opposite approach, aiming to owe a small amount, requires staying under the underpayment penalty thresholds, which generally means paying at least 90% of the current year’s tax or 100% of last year’s, whichever is smaller.

    How to submit and check the result

    Submit the new W-4 to your employer’s payroll department or through the HR system; it does not go to the IRS. Then verify it worked: check the federal withholding line on your next pay stub and compare it to the previous one. Payroll changes occasionally fail to take effect, and the pay stub is the only confirmation that matters.

    Two weeks after the change, run the Tax Withholding Estimator again using the new numbers. If the projection lands close to zero owed or a small refund, the W-4 is doing its job.

    FAQ

    Can I still claim exempt? Only if you had no tax liability last year and expect none this year. Write “Exempt” below line 4(c), and note that exempt status must be renewed every year by mid-February.

    Does a W-4 affect Social Security and Medicare taxes? No. Those are fixed percentages and are not affected by anything on the form.

    How often can I submit a new W-4? As often as you need to. Employers must process a valid form promptly.

    Do I file a W-4 for a side gig paid on a 1099? No. Contractor income has no withholding; you handle it through quarterly estimated payments or by increasing withholding at your W-2 job using line 4(a).

    Where do I find the estimator? Search “Tax Withholding Estimator” on irs.gov. Have your most recent pay stubs and last year’s return available.

    Sources

    Last updated: August 18, 2026. Written by the InfoBrief Editorial team. Policies and prices change; confirm with the official source before acting. See our disclosure.

  • How to Get an EIN for Free From the IRS (and Avoid Paid Look-Alike Sites)

    How to Get an EIN for Free From the IRS (and Avoid Paid Look-Alike Sites)

    Quick answer: Apply at irs.gov using the “Apply for an EIN Online” tool. It is free, takes about 10 minutes, and you get your Employer Identification Number immediately as a downloadable confirmation (CP 575). Any website that charges a fee for an EIN is a third-party filing service, not the IRS. You need a Social Security number or ITIN for the person applying, and the business must be located in the United States or its territories.

    Key Takeaways

    • An EIN is always free directly from the IRS at irs.gov; third-party sites charging $50-$300 are not the IRS
    • Apply online Monday-Friday during IRS hours and you receive the number immediately as a PDF confirmation
    • You need a valid SSN or ITIN for the responsible party, and the entity must be located in the U.S. or its territories
    • One EIN per responsible party per day; sole proprietors, LLCs, corporations, partnerships, estates, and trusts all use the same online form
    • Keep the CP 575 confirmation letter; banks and payroll providers will ask for it

    What is an EIN and who needs one?

    An EIN is a nine-digit federal tax ID for a business or other entity, formatted XX-XXXXXXX. You need one if you have employees, operate as a corporation or partnership, file employment or excise tax returns, withhold taxes on income paid to a nonresident alien, or have a Keogh plan. Most single-member LLCs and sole proprietors without employees are not legally required to have one, but nearly all get one anyway because banks require it to open a business account, it keeps your SSN off contracts and W-9 forms, and many payment processors and marketplaces ask for it. Estates and trusts also apply for EINs.

    Before you apply: what you need

    • Legal name of the entity and any trade name (DBA)
    • The responsible party: an individual who controls or owns the entity, with a valid SSN or ITIN
    • Mailing address and, if different, physical location
    • Type of entity (sole proprietor, LLC, corporation, partnership, estate, trust, nonprofit) and, for LLCs, the number of members
    • Reason for applying (started a new business, hired employees, banking purposes, changed organization type)
    • Date the business started or was acquired, and the closing month of your accounting year
    • Whether you expect to have employees in the next 12 months and, if so, how many

    If your LLC was formed at the state level, form it first and use the exact legal name from your formation documents.

    How to apply online step by step

    1. Go to irs.gov and search “Apply for an EIN Online,” or navigate to Businesses → Employer ID Numbers. Confirm the address bar shows irs.gov.
    2. Click “Apply Online Now” during available hours (the tool is open Monday through Friday during posted hours, Eastern time, and is not available on weekends).
    3. Select the entity type and answer the questions about why you are applying and how the entity is structured.
    4. Enter the responsible party’s name and SSN or ITIN, then the entity’s addresses and start date.
    5. Choose how to receive the confirmation: online (PDF immediately) or by mail (up to four weeks).
    6. Review and submit. Download and save the CP 575 confirmation letter right away; the IRS does not let you re-download it later.

    The session times out after 15 minutes of inactivity, so have your information ready before you start.

    Applying by fax, mail, or phone

    Method How Time to receive EIN
    Online irs.gov EIN Assistant Immediately
    Fax Form SS-4 to the IRS fax number for your state About 4 business days
    Mail Form SS-4 to the IRS address listed in the instructions About 4 weeks
    Phone (international applicants only) Call the IRS international EIN line Same call

    Applicants without an SSN or ITIN, or with a principal business outside the U.S., cannot use the online tool and must apply by phone, fax, or mail using Form SS-4.

    How to spot paid look-alike sites

    Search results for “get an EIN” are full of ads for services charging $50 to $300 to “file your EIN.” They fill out the same free IRS form on your behalf. Signs you are not on the IRS site: a .com domain, a price, a request for credit card details, or promises of “expedited” processing. The IRS never charges for an EIN and never emails or texts you an EIN. If you already paid a third party, the EIN itself is still valid; just make sure you have the CP 575 letter.

    After you get your EIN

    • Open a business bank account (bring the CP 575 and formation documents).
    • Use the EIN instead of your SSN on W-9 forms from clients and platforms.
    • Register for state tax accounts (sales tax, state employer ID) if required.
    • If you hire employees, set up payroll tax deposits and file Forms 941/940.
    • Keep the responsible party information current with Form 8822-B if it changes.

    FAQ

    Does an EIN expire? No. Once assigned it belongs to that entity permanently, even if you never use it.

    Do I need a new EIN if I change from sole proprietor to LLC? Usually yes when the entity type changes; the IRS lists the situations on its “Do you need a new EIN?” page.

    Can I look up my EIN if I lost it? Check the CP 575 letter, old tax returns, or bank records; otherwise call the IRS Business & Specialty Tax Line to have it confirmed.

    How many EINs can I get? One per responsible party per day, and one per entity.

    Is an EIN the same as a business license? No. Licenses come from your state or city; the EIN is only a federal tax ID.

    Sources

    Last updated: August 17, 2026. Written by the InfoBrief Editorial team. We link to official sources and update articles when facts change. See our disclosure.

  • How to Check Your IRS Tax Refund Status (Where’s My Refund Guide)

    How to Check Your IRS Tax Refund Status (Where’s My Refund Guide)

    Quick answer: Go to irs.gov/refunds (Where’s My Refund) or open the IRS2Go app. Enter your Social Security number, filing status, and the exact refund amount from your return. E-filed returns show up within 24 hours; paper returns take about four weeks to appear.

    Key Takeaways

    • Use irs.gov/refunds or the IRS2Go app
    • You need your SSN, filing status, and exact refund amount
    • E-filed returns appear within 24 hours; paper returns take about 4 weeks
    • Most refunds arrive in under 21 days with direct deposit

    What you need before you check

    • Your Social Security number or ITIN
    • Your filing status (single, married filing jointly, etc.)
    • The exact whole-dollar refund amount shown on your tax return

    All three must match your return exactly or the tool will show an error.

    The three status stages

    Return Received means the IRS has your return and is processing it. Refund Approved means the refund has been calculated and a send date is set. Refund Sent means the money is on its way; direct deposit typically arrives within five business days, and paper checks can take several weeks in the mail.

    How long refunds usually take

    The IRS says most refunds are issued in fewer than 21 calendar days for e-filed returns with direct deposit. Paper returns and mailed checks take longer, often six to eight weeks. Returns claiming the Earned Income Tax Credit or Additional Child Tax Credit cannot be issued before mid-February by law, regardless of when you file.

    Why your refund may be delayed

    Common causes include math errors, missing forms, a mismatch between your return and IRS records, identity verification holds, or an amended return. If Where’s My Refund tells you to call the IRS, only then should you phone; otherwise calling does not speed things up.

    Checking an amended return

    Amended returns (Form 1040-X) are tracked separately at irs.gov using the “Where’s My Amended Return” tool. These can take 16 weeks or longer to process.

    FAQ

    How often is Where’s My Refund updated? Once a day, usually overnight. Checking multiple times per day will not show new information.

    Can I check the status by phone? Yes, the automated refund hotline is 800-829-1954, but it provides the same information as the online tool.

    What if the refund amount deposited is different from what I expected? The IRS may have adjusted your return or offset the refund for past-due debts. You will receive a letter explaining the change within a few weeks.

    Reading IRS letters instead of guessing

    When a refund stalls, the IRS communicates by mail and only by mail. It does not email, text, or call about refunds, so any message doing so is a scam. Each letter carries a number in the upper right corner that tells you exactly what is happening.

    Letter 5071C or 4883C asks you to verify your identity before the refund is released, either online at idverify.irs.gov or by phone. The return sits frozen until you respond, so this is the one letter you cannot set aside.

    Notice CP12 means the IRS corrected a math error and your refund amount changed. If you disagree you generally have 60 days to contest it, after which the correction stands.

    Notice CP05 means the return is under review and no action is needed from you yet. These reviews commonly take 60 days or more.

    Notice CP49 means all or part of your refund was applied to a tax debt you owed.

    Looking the notice number up on irs.gov confirms both the letter’s authenticity and what it requires.

    When your refund goes somewhere else

    The Treasury Offset Program can redirect a federal refund to cover past-due federal or state taxes, child support, defaulted federal student loans, and certain other debts. If this happens, Where’s My Refund shows a reduced amount, and the Bureau of the Fiscal Service mails a notice identifying which agency received the money along with its contact information. Disputes go to that agency, not to the IRS, which is a distinction that costs people weeks of misdirected phone calls.

    One situation is worth knowing in advance: if you file jointly and only your spouse owes the debt, your share of the refund can be recovered by filing Form 8379, Injured Spouse Allocation. It can be filed with the return or afterward, though filing it with the return avoids the offset in the first place.

    Why some refunds legitimately take much longer

    The “under 21 days” figure applies to straightforward e-filed returns with direct deposit. Several categories fall outside it by design rather than by error.

    Returns claiming the Earned Income Tax Credit or Additional Child Tax Credit cannot be issued before mid-February by law, regardless of how early you file, because the IRS uses that window to screen for fraudulent claims. Paper returns are processed manually and take four to eight weeks before the refund stage even begins. Amended returns on Form 1040-X are tracked in a separate system and routinely take 16 weeks or more. And returns flagged for income mismatches wait for the IRS to reconcile what you reported against the W-2s and 1099s it received from employers and payers.

    What to do when the tool shows nothing useful

    Where’s My Refund returning an error is usually one of three things. You checked too soon: e-filed returns take 24 hours to appear and paper returns about four weeks. The refund amount you entered does not match exactly: it must be the whole-dollar figure from line 35a of Form 1040, not the amount that landed in your bank after fees if you used a refund transfer product. Or the filing status is wrong, which happens most often when someone selects head of household but filed as single.

    Calling rarely helps in the first 21 days, because phone representatives see the same information the tool displays. After 21 days for an e-filed return or six weeks for a paper one, the automated line at 800-829-1954 or a representative can look deeper. Taxpayer Advocate Service assistance is available for genuine hardship cases where a delayed refund is causing significant financial difficulty.

    Preventing the problem next year

    Most refund delays trace back to a handful of avoidable causes. File electronically and choose direct deposit, which together eliminate the largest source of delay. Verify names, Social Security numbers, and bank routing details before submitting, since a rejected deposit converts a fast refund into a mailed check weeks later. Report all income, including 1099-NEC and 1099-K forms, because the IRS matching system will find the discrepancy. And if you have ever been a victim of identity theft or tax fraud, request an Identity Protection PIN, which prevents anyone else from filing a return using your Social Security number.

    Sources

    Last updated: August 15, 2026. Written by the InfoBrief Editorial team. We link to official government and company sources and update articles when facts change. See our disclosure.