HOW DO I GET A LARGER REFUND NEXT YEAR?

[Thania42]

How do I get a larger refund next year?

[AmyATX]

All other things equal (consistent income, deductions, etc), you can change your withholding but adjusting the form W-4 from your employer.  This means that your paycheck will be lower with the additional withholding so you will not have access to it during the year, but the additional withholding will give you a larger refund.  Ultimately, it's just a trade-off in when you receive the funds.

The W-4 may be adjusted a few different ways, but the best option for you will be adding a specific amount of additional withholding.  For example, if you are paid twice a month, adding $50 per pay period for the full year will increase your refund by $1,200 ($50 x twice per month x 12 months).

[Terri Lynn]

Hello Thania42!

 Thank you for joining us!

If your goal is specifically to get a bigger refund at tax time, that means you want more tax withheld from your paychecks than you actually owe. This essentially gives the government an interest-free loan throughout the year, which is then returned to you as a refund.

Here's How:

1. Increase Paycheck Withholding (Most Common):
• Federal (W-4): Use the IRS Tax Withholding Estimator (IRS.gov/W4App). Enter your income, deductions, and credits, then specify a higher "desired refund" amount. The estimator will advise you on how to adjust Step 4(c) (Extra Withholding) on your Form W-4 and your spouse's W-4 (if applicable). Submit new W-4s to your employer(s).
• State (State W-4): Locate your state's withholding form on its Department of Revenue website. On this form, either reduce the number of allowances/exemptions claimed or, more precisely, enter an "additional amount to be withheld" per pay period. Submit the updated form to your employer.
2. Overpay Estimated Taxes (For Non-Wage Income):
• If you have income not subject to withholding (e.g., self-employment from your LLC, investments), intentionally pay more than your calculated quarterly estimated taxes to both the IRS and your state.
• IRS Estimated Taxes: IRS.gov/estimatedtaxes
• State Estimated Taxes: Search "[Your State] estimated tax payments" on your state's tax website.
3. Maximize Deductions & Credits:
• Reduce your overall tax liability by maximizing eligible deductions (e.g., pre-tax contributions to 401(k), HSA, IRA) and tax credits (e.g., Child Tax Credit, education credits). The less you actually owe, the more of your over-withheld money will come back as a refund.
• IRS Publications: Refer to IRS.gov for detailed publications on specific deductions (e.g., Pub 525 for retirement plans, Pub 969 for HSAs) and credits (e.g., Child Tax Credit, Education Credits).

Helpful Links:

•   IRS Tax Withholding Estimator  
• TurboTax Refund and Return Estimator 

Please feel free to reach backout with any additional questions or concerns you might have!

Thank you for joining us today and have an amazing rest  of your day!

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer.”