Question
Single - no dependents but W4 calculator says to claim 3 allowances
I just used the tax withholding estimator on the IRS site and it estimated that I'm overpaying $339. I live in NJ, I'm filing as single with no dependents, and my total salary is $48,700. The expected tax withholding is $4,114 and the anticipated tax obligation is $3,775.
I contribute to my 401k and FSA. The estimator used my interest paid on student loans as an adjustment to income ($1,888.63). Is it the adjustment the reason why it says I'm overpaying, and should I claim 3 allowances instead of my current 2?
