I know this is probably a silly and simple question, but consider me a dummy when it comes to tax. My question is how do I figure out how to not have the IRS take so much of my paycheck during the year (so that they can have their interest-free loan until next April 15)? I know that in the tax-bracket I'm in (low), with my itemized deductions, and with the new child tax credit, I'll be receiving $ from the IRS come tax time. Obviously, however, I'd like to be receiving that money currently. Do I just change my withholdings number? Is there a worksheet that would help me estimate how much I should cease to withhold?Sorry so naive, but any help would be appreciated!Sloan
"how do I figure out how to not have the IRS take so much of my paycheck during the year (so that they can have their interest-free loan until next April 15)?"You should file a new W-4 form with your employer (probably through your human resources or payroll dept), to make sure your having the right amount withheld from your paycheck. This IRS website will help you figure out what the right amount is...http://www.irs.ustreas.gov/prod/ind_info/webw4/index.htmlGood luck!Jennifer
You are permitted to compute your taxes and have the appropriate amount withheld, without regard to actual dependents. You can even make up for overwithholding in the early part of the year. You are NOT allowed to underwithhold less than you actually estimate your taxes to be. Ed
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