How to adjust W4 to take out less taxes?

Hello everyone, I believe I am getting to much taxes taken out of my paycheck because my refund was more than expected.

I did the IRS withholding calculator and got some numbers to expect a $0 return, but where do I put those numbers on the W4 form to take less taxes out? It seems like the fields are to take more taxes out.

On my Workday portal, I have an option to calculate pay checks based on different tax scenarios but can’t seem to get it right. When I change my withholding amounts my paychecks stay the same or either decrease even more.

The ultimate goal is for me to get more money each paycheck, rather than getting a refund at the end of the year.

Comments

jokerfriend6 t1_jeh2jgk wrote on March 31, 2023 at 11:36 PM

#2,559,837

Increase the number of dependents to have less taxes taken out. I would increase it by one and see how the year ends up.

Mekaiyo OP t1_jeh2oik wrote on March 31, 2023 at 11:37 PM

#2,559,925

Replying to jokerfriend6 (#2,559,837)

I thought you had to actually have a dependent to do that? I’m sure if the projected pay matches what the IRS calculator says then it should be close

Werewolfdad t1_jeh2qz4 wrote on March 31, 2023 at 11:37 PM

#2,559,959

The irs calculator gives you a form to use

wijwijwij t1_jeh3456 wrote on March 31, 2023 at 11:40 PM

#2,560,149

Step 3 is where you put a dollar amount for the amount less tax you want taken across a full year.

Mekaiyo OP t1_jeh34fb wrote on March 31, 2023 at 11:40 PM

#2,560,157

Replying to Werewolfdad (#2,559,959)

I understand that, just didn’t know where to input the number on the W4 form. For example if they said to get a $0 return, I need to change my numbers by $200

Mekaiyo OP t1_jeh37tk wrote on March 31, 2023 at 11:41 PM

#2,560,190

Replying to wijwijwij (#2,560,149)

Ahhh that makes sense, I just used my HRs calculator and looks like my paychecks increased by $100

wijwijwij t1_jeh3fgb wrote on March 31, 2023 at 11:43 PM

#2,560,284

Replying to Mekaiyo (#2,560,190)

The W-4 subtitle makes it seem like that line is just for people who have dependents (child tax credit), but the instructions say you can use it for other purposes, such as your idea of getting your withholding to be more accurate.

Werewolfdad t1_jeh3nsy wrote on March 31, 2023 at 11:44 PM

#2,560,417

Replying to Mekaiyo (#2,560,157)

You don’t input numbers on the w4. The irs calculator gives you a pre-filled w4 at the end.

Mekaiyo OP t1_jeh3px6 wrote on March 31, 2023 at 11:45 PM

#2,560,443

Replying to wijwijwij (#2,560,284)

Awesome thank you so much! This is what I was looking for! Hopefully I don’t owe the gov next year! So basically if the IRS calculator says I need to withhold $200 each pay check, I do $200 X 26 = $5200 for the yearly amount?

jokerfriend6 t1_jeh4dtq wrote on March 31, 2023 at 11:50 PM

#2,560,780

Replying to Mekaiyo (#2,559,925)

No you don't. Its only for filing you have to be accurate. Its always best to get a refund vs pay. My Salary and income varies quite a bit. But increasing your dependent by 1 will help, and add or subract each year depending on how much you need to pay or get back. If you have not enough taken out you could get penalized. I always shoot to get back $1000.

wijwijwij t1_jeh4m6c wrote on March 31, 2023 at 11:52 PM

#2,560,915

Replying to Mekaiyo (#2,560,443)

No; putting 5200 will withhold 200 more each paycheck than the NORMAL withholding on a paycheck. Not a total of 200 per paycheck.

So you may need to see by how much you overpaid this year, and use that figure.

StuffinYrMuffinR t1_jeh50gc wrote on March 31, 2023 at 11:55 PM

#2,561,145

Replying to jokerfriend6 (#2,560,780)

Oweing or refund come April 15th is more of a personal preference and circumstance.

Several of our clients basically ignore estimates and pay a fat check at the end of the year because they have such a high RoI that they come out ahead paying penalties and interests.

The average Joe should take your advice and aim for a refund under 1k