Update your Form W-4 so that your employer can withhold the correct income tax from your pay.

Update your Form W-4 so that your employer can withhold the correct income tax from your pay. Increase or decrease exemptions on W-4 so that you dont owe taxes at the end of the year and you don’t get any back either. Because your tax situation may change, you may want to refigure your withholding each year. This increases your cash flow during the year and foregoes the state tax refund addition to income the following year.