Question

Decreasing federal tax withholdings

Forum|Forum|3 years ago
July 27, 2022
2 replies
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I recently started a new job and need slightly more net income each month. I used to claim "1" on the old W-4. What should I do?

C

Corrlich44

The only way to marginally affect the withholding tax tables on the new W-4 is to report a different filing status, which is not an exact science. It was the Treasury Department's intent to prevent people from withholding less taxe.s.

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OmM1

Hello LMurphy05

Congratulations on your new job.

Since I am not familiar with your prior job situation, I just want to caution you that when you start a new job, your new employer, absent your providing information about your prior job (via W4) may not deduct enough taxes and you may end up owing taxes at the end of the year.

Also, the IRS replaced the old Form W4 (where you used to claim exemptions) with a new system beginning in 2020.

In view of above, please use IRS Tax Withholding Estimator by clicking here and submit a revised W4 form with your employer. This will get you the maximum possible net pay every paycheck and at the same time avoid owing taxes at the end of the year.

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