Question

I logged into my employee portal today to view my paycheck and my gross pay was almost $600, but by the time deductions are taken out then my net pay is around $460/week. Are there ways that I can have less taxes taken out of my check? I claim 1 for myself as a standard deduction and I've read you can try to claim 2 and sometimes that will work to keep more money in your paycheck. I'm not a tax accountant. I'd like to keep most of my paycheck every week instead of having 20% in taxes.  

Answer 1

You could. But remember you’ll still owe the same amount at the end of the year so you may have to pay then. You want as close to 0 and having to pay to much incurs a penalty

Comments

@concertante76454 it's all an adjustment to balance out possible deductions you will get at the end of the year. The basic formula on the back of the W4 to calculate deductions should generally be correct. A 1 point change to your withholdings has a very specific dollar amount tied to it. It used to be tied to the personal exception amount but it may no longer be with the latest w4 update. Since under the new tax law there are no personal exceptions . If you overshoot by 1 extra deduction point on a W4 it is highly unlikely you will pay any penalty. Most people adjust their dedcution annually after tax season based on the size of their refund or amount owed. Assuming your job pay is consistent year to year. If you know what your full pay will be for the year, you can also just run a tax calculator to see what your true income tax burden should be. Figure out then if you will be owed money at year's end. If you will be. You can take that amount divide over your number of annual paychecks to see how much more money is due to you. The check with your W4 to see what an exception point is worth, or just straight out write in the amount you want to withhold from taxes. If this feels iffy to you try to talk to a CPA for a recommendation on how best to adjust things.  

Answer 2

When you file taxes, do you usually owe or get a refund, and how much? By getting more money from your paycheck (paying less in taxes throughout the year) this will decrease your refund or increase the amount you owe at the end of the year.  

Comments

Changing the amount of withholding is done on your W4 with your employer or HR person.  

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If you have a strategy for the extra 1000 you would pull out by changing your tax contribution, I would do it, otherwise I would leave it as is and then immediately save/invest your refund when it comes.  

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I work for a tax form. I have my advisors run projections all the time to calculate withholding or other test scenarios. If you email info@molentax. com with these details, i can get them to find a close number for you. The new W4 has been confusing a lot of people lately.  

Answer 3

There is a new W4 form for 2020. Use the IRS on line calculator and see what the result is. That will give you a hint into what you might or might not want to do. The only thing you can really change is your federal withholding. there is not really much you can do about all the other deductions, they are what they are.  

Answer 4

I was having this same shit as a problem but someone helped me with different alternatives , if you are interested pm me

Answer 5

There are several question no one has asked you yet. Do you have any money taken out for a 401k? Do you have a company sponsored HSA? You can use those to help change your taxes in your paycheck as well.  

Answer 6

Vote Republican

Answer 7

20%. how nice that would be . To your question, everyone else answered it. The taxman cometh. it’s a pay me now or pay me later type of situation.