How do I calculate my W-4 deductions when I want to keep 5 more of each paycheck?
I am having a hard time figuring out how to add 5 to each check using my W4 form. My refund is usually pretty decent and I could really use half of that amount during the year instead, about 00. Problem: I do not know how many dependents/exemptions to claim. I usually claim 10 and I'm HOH, 2 children that qualify for child tax, no money withheld, make 00 twice/month gross. How do I translate the amount I want to add to each check into a number of exemptions?
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Generally the advice is that each allowance on the W-4 represents a personal exemption amount. In 2016 that number is ,050.
A person that takes the standard deduction and exemptions for themselves and their spouse will have approximately the correct amount withheld. If they have enough deductions to itemize, or they have kids that get tax credits, or other items such as college tuition, they can claim more allowances on the W-4 to reduce the size of their refund. If they have multiple jobs they may have to have additional funds withheld or use artificially low allowances to make sure enough money is withheld.
If a person wants to reduce the size of their refund they increase the number of allowances to reduce the withholding for each check. The formula depends on their marginal tax rate:
10% bracket each allowance is worth 10% of ,050 or 16.88 per check for 24 checks per year.
15% bracket each allowance is worth 15% of ,050 or 25.31 per check for 24 checks per year.
25% bracket each allowance is worth 25% of ,050 or 42.19 per check for 24 checks per year.
Now onto your situation.
I usually claim 10 and I'm HOH, 2 children that qualify for child tax,
no money withheld, make 00 twice/month gross. How do I translate
the amount I want to add to each check into a number of exemptions?
The fact that your gross is about ,000 a year and you are getting a refund that large means that you are in a situation that you want to have [CO] tax withheld from each check. The 10 allowances you are putting on the W4 appear to be doing that already.
Unfortunately I know of no other way to move forward your refund amount so that you will have access to funds throughout the year.
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