So usually I always have more money taken out per paycheck so id have a bigger return. Recently I’ve decided I’d rather have that money in my check and get no refund. So I was trying to change my withholding and since I have 2 jobs I went to use the irs calculator. But after doing everything, it tells me if I want to increase my take home pay, to add an extra $15 of withholding. I’m confused. Why would I have them take out more if I want more in my check?
Posted by DatboiiGlizzy30
2 Comments
The recommendation is likely changing your base withholding as well. Like you might have single 2 jobs on one job right now, and it’s having you change to single, but not check the box for 2 jobs, then add 15.00 extra withholding. That will overall withhold less than your previous setting.
There’s an IRS withholding calculator. Do that (it’s easier if you just pretend it is January 1, and your first paycheck is your only paycheck).
Then using that info, redo your w-4. W-4 have changed a bit if you haven’t done one in 5-10 years.
I recently reduced mine. Entered a credit amount of about 300, gave my additional income. It didn’t withhold enough so I added like $6 extra withholding.
But basically figure out how much you should withhold to just pay your tax liability and then add some if you want a small refund or you want more wiggle room.