Hi  rudals8446

Different strokes for different folks.  If you withhold less now, you have more money in the bank now to spend or invest.  Some people can add more income to retirement accounts and lower their tax bills as well.

Other people use their tax refund as a saving account with no interest and like a large refund each year.

Here are a couple articles I like that discuss the options:

https://turbotax.intuit.com/tax-tips/irs-tax-forms/form-w-4-and-your-take-home-pay/L4VSEhPez

https://turbotax.intuit.com/tax-tips/tax-refund/fatten-your-paycheck-and-still-get-a-tax-refund/L5Ha...

Hope these help answer your questions!   

Have a great day!

Hi!

SoCalGal22 makes an excellent point. In the final analysis, which would you prefer to be true?

Would you want more income in your pay each payday? This allows for you to do more because there is more income. Many prefer to have the money now as opposed to getting a lumpsum at tax time.

The more accurately you answer the questions when preparing your W-4, The more control you will have over your monthly income.

To that end, you may choose The Tax Estimator approach to have MORE control over your withholding!

https://apps.irs.gov/app/tax-withholding-estimator

thank you very much! I will check out those articles!