Tax withholding question

[brunell8]

Does the amount of tax withheld go up or down if I increase my deductions? I didn't have near enough taken out of my pension last year, so my refund sucked. Which way do I need to adjust my deductions to have more taxes taken out throughout the year enabling a larger refund?


Locked at OP's request.

ATOT Moderator ElFenix

 

[olds]

Where do we get these people?

 

[ggnl]

How about you get a savings account instead of relying on the gov't to hold it for you?

 

[meltdown75]

you're guilty, pay the fine

 

[Crusty]

 

[RagingBITCH]

Umm....seriously? Go talk to your HR department if you're that clueless.

 

[acheron]

a) that's a terrible idea.

b) Text

 

[brunell8]

Yeah, thanks for the help.

 

[JDub02]

Go get an W-4 from HR.

Start reading. Top to bottom, left to right, group words together as a sentence. Take Tylenol for any headaches, Midol for any cramps.

 

[rbV5]

Decreasing your deductions increases your witholdings.

 

[D1gger]

Decreasing your deductions will increase your net income which will increase the amount of tax withheld.

A better question is why you wouldn't just put an extra $20 (or whatever amount you want them to withhold) in a savings account every paycheck and let it earn at least a small amount of interest?

 

[MrChad]

Originally posted by: brunell8
Does the amount of tax withheld go up or down if I increase my deductions? I didn't have near enough taken out of my pension last year, so my refund sucked. Which way do I need to adjust my deductions to have more taxes taken out throughout the year enabling a larger refund?

As other have hinted at, in an ideal situation your tax return would be zero. That means that the government is withholding just the right amount from your paycheck. When you get a refund, the government has withheld too much from your paycheck. This is money that you could be earning interest on throughout the year. When you owe the government, too little has been withheld. If you owe too much to the government, you may be liable for penalties.

PaycheckCity.com has a nice online calculator to help you fill out your W-4 correctly.

 

[CPA]

Originally posted by: D1gger
Decreasing your deductions will increase your net income which will increase the amount of tax withheld.

A better question is why you wouldn't just put an extra $20 (or whatever amount you want them to withhold) in a savings account every paycheck and let it earn at least a small amount of interest?

uh, what? You can't increase your income and increase the tax withheld at the same time, unless you got a raise.

Also, OP why the hell do you want a refund? Stop being brainwashed. Pay to the government, don't be owed.