Hi all, we have a brand new page up in our taxes section, related to understanding and filling out a W-4. What's that you say? You are graduating medical school and you've never had a real job and you don't know what a W-4 is? Or perhaps you mistakenly think that's the form that requires "One from List A OR one from List B AND List C"? Well then this page is for you!
But maybe you have indeed filled out out a W-4 before, but threw a random number down in Box 5 and got blindsided by a large tax bill when you filed your taxes and wondered what the heck happened. Well, this page is for you also.
Most employers won't pay you without a W-4 (AND an I-9 I should add), so it's time to figure it out. A W-4 is the form in which YOU tell your employer how much in federal taxes you may owe, and lets them know how much to withhold and send to the IRS on your behalf. It can be particularly tricky if you have two jobs, a working spouse, or high income. Withhold too little, and you end up owing penalties and interest on the underpaid tax (in ADDITION to a large unexpected tax bill in April). Withhold too MUCH, and you've given the government your money to hold onto for you, for no good reason.
Many MD's will be transitioning to new jobs this summer and will need to fill one out. So head over to our Taxes section now, read up on W-4 forms, and be prepared!