Keep in mind withholdings are meant to offset any tax you have due on income earned. The ideal situation is to break even at tax time. Money you withhold is money the government holds interest free. So while you will be increasing your refund, you may be losing out on interest you could be earning in a savings account.
The tax rate by the State is normally lower that the rates for the IRS so you can always withhold less but for your own peace of mind there is no issue withholding the same amount for both state and federal.
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