If you normally look forward to getting a bigger refund after you file your taxes, there's a fairly simple adjustment you can make. You can also adjust the results to hone in on your ideal size for an estimated tax refund - by increasing or decreasing your withholding to make sure you get the right amount in your paychecks.ĭo you still want a refund? Here's what to do.If you do decide to make any changes, the calculator will show you what to write on each line of Form W-4.If you're stuck on any question, TurboTax will provide more details about what exactly you're looking for so you can input the correct information.īased on the results, you can determine if making adjustments to your withholding to lower your refund and get a bigger paycheck is the right move for you. You'll need to provide information like your: Tax withholding calculators, such as the one TurboTax offers, help you get a big picture view of your refund situation by asking detailed questions. If you make adjustments in the middle of the year, your results may vary. TurboTax Tip: For best results, make your W-4 adjustments as soon as possible, preferably before the start of the tax year. You'll have to answer questions about your tax situation before the calculator will tell you how to fill out your Form W-4. Tools, such as withholding tax calculators, can help you figure out what to fill in on the various steps of Form W-4. You can also add other sources of income or extra withholding if you find you want more money withheld from your paycheck.These options allow you to reduce the tax withheld through claiming tax credits or deductions.Otherwise, you can use Step 3, claiming dependents, and Step 4, other adjustments, to make changes to your withholding.For those with multiple jobs or that have a spouse that works, you'll need to complete Step 2.The more accurately you complete the form, the more precise your withholding should be. This form requires you to fill in a few sections depending on your situation. To do so, you'll need to fill out a new Form W-4 and submit it to your employer. If getting your refund throughout the year rather than at tax time sounds appealing, you can adjust your withholding today. The average tax filer would have received roughly an additional $247 per month if they adjusted their withholding to neither get a refund nor owe taxes.Īdjusting your withholding could move your refund to your paychecks.However, it may provide even more value spread out throughout the year, rather than receiving it all at once. This windfall at tax time can be handy.According to the IRS over 247 million tax refunds were issued in fiscal year 2021 and the average refund was $2,959. If you received a tax refund last year, you aren't alone. All you have to do is submit a new Form W-4 to your employer to adjust your federal income tax withholding. If you'd rather have a bigger paycheck and a smaller refund, you can control this. In other words, you gave Uncle Sam an interest-free loan. But have you ever taken a second to think about what a refund means? Over the course of the year, you paid more federal income tax than you owed. When you file your taxes and get a tax refund, most people celebrate. Tax withholding calculators help you get a big picture view of your refund situation by asking detailed questions.To receive a bigger refund, adjust line 4(c) on Form W-4, called "Extra withholding," to increase the federal tax withholding for each paycheck you receive.To fatten your paycheck and receive a smaller refund, submit a new Form W-4 to your employer that more accurately reflects your tax situation and decreases your federal income tax withholding.
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