Correct letter in the Form W-4

Aug 6th, 2022
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How to correct letter in the Form W-4

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hey youtube so in this video i wanted to go over what do you do if every year when you file your tax return youre getting a massive tax refund right now i know youre thinking well thats a good thing right im getting a bigger refund thats what i want i like that nice big check thats kind of true but you need to really explore why are you getting the refund if youre in a position where youre getting a tax refund basically just out of your federal withholding is coming out of your wages so youre not getting any kind of special tax credits or incentives things like that youre just getting back the money that you paid in to the irs during the year maybe you might want to adjust your withholding right so think about this if you get a tax refund at the end of the year it means that you paid too much taxes during the year to the irs and so if youre paying too much every single year you might want to go to your employer and adjust the amount of federal withholding coming out of your

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You can claim a personal exemption for yourself unless someone else can claim you as a dependent. Note thats if they can claim you, not whether they actually do. If you qualify as someone elses dependent, you cant claim the personal exemption even if they dont actually claim you on their return.
Submit a new Form W-4 to your employer if you want to change the withholding from your regular pay. Complete Form W-4P to change the amount withheld from pension, annuity, and IRA payments. Then submit it to the organization paying you.
The longer the mistake goes unnoticed, and the longer youre underpaying employee payroll taxes, the bigger the tax penalties. You can be penalized for 100% of the money owed, plus interest as the months and years go by.
Your entries on Form W-4, the Employees Withholding Certificate, determine how much tax your employer will deduct from your paycheck. The more accurately you fill it out, the less you will owe (or be owed) when you file your annual income taxes.
Claiming 1 reduces the amount of taxes that are withheld from weekly paychecks, so you get more money now with a smaller refund. Claiming 0 allowances may be a better option if youd rather receive a larger lump sum of money in the form of your tax refund.
By placing a 0 on line 5, you are indicating that you want the most amount of tax taken out of your pay each pay period. If you wish to claim 1 for yourself instead, then less tax is taken out of your pay each pay period. 2. You can choose to have no taxes taken out of your tax and claim Exemption (see Example 2).

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