Archives for January 2020

Most people strive to be comfortable, in the clothes we wear, the people we associate with, in places we live or work. I have sought to be comfortable the older I got.

Then I had a shift in thinking. Comfort breeds mediocracy.

If you truly want to grow, in your relationships, your wealth, your physical health, your spiritual health, or in your intellect, you have to push yourself in each one of these areas to the point of being uncomfortable.

Now my new mantra is “I like to be uncomfortable”.

So how do you challenge yourself to be uncomfortable? There are several ways:
1. Do what you don’t want to do. Pick the path that is the hardest and take the first step.
2. Push yourself past “the wall”. When you get to the point that you can’t run another minute, or make another sales call, or study another chapter, do it, you’ll be amazed at what is on the other side. As a former college athlete and a 56-year old man I have a lot of knee and hip pain. I have found in my running that if I push myself through the pain that I feel when I start to run, I don’t die and have a great workout.
3. Go for failure. The greatest lessons learned are when you fail, If you don’t go for failure you are missing out on a lot of different experiences. Do not be afraid to fail, it is not fatal.
4. Embrace the suck. Know that the hard stuff sucks, it always will, but the reward is great. Enjoy the journey.
5. Set challenging goals. Don’t talk yourself out of them, and don’t figure out how you are going to reach them before you start down the path towards the goal. Just take the step, try something, if it doesn’t work, try something different. Then set a series of smaller goals that leads to the larger, more challenging goal with what you have learned. The processes of trying, failing and repeating shows you the way.

The W-4 form is the form you fill out when you are hired for a new job. It has changed substantially from 2019, due to the passage of the new tax law in 2018.

Why did it change? It changed due to the tax law change eliminating the deduction for dependents on the tax return this information is not relevant anymore in calculating employer withholding (the standard deduction was increased to account for the elimination of the dependent deduction).

Do I need to fill out a new W-4? The only time you need to fill out a new W-4 is if you change jobs, a change in marital status, or a change in number of dependents. Although, if you had a higher tax refund than you would like or had not enough withheld you may want to fill out a new W-4.

How do I fill it out? At a minimum you need to fill out Step 1 (personal information and marital status) and Step 5 (signature and date). Step 2 is if you have more than one job or have a spouse that works. This step is a little complicated as it involves some calculations from your 2019 tax return. I suggest if you want to complete this section to read the instructions carefully and/or consult with a tax professional. As an alternative, a safe way to fill this out is to have one spouse complete steps 1, 5 and 3 (explained next) and the other just complete Steps 1 & 5. Step 3 is where you figure the tax credits you will get for your dependents under 17 and those older than 17. These credits were expanded to more taxpayers as part of the new tax laws in 2018. Step 4 is where you calculate the extra amount of taxes you want withheld out of your paycheck. This is similar to the previous W-4 where you can just put down a “flat” amount of additional withholding per check. In step 4 you can also make adjustments for other “not from job income” and other deductions. Once again this would require some calculations involving your previous years’ tax returns.

The IRS has included a tax withholding estimator if you are interested. It can be found at: https://www.irs.gov/individuals/tax-withholding-estimator

If you or your employer have any questions, feel free to contact me at craig@maxwellcpa or at 870.364.8992.