This year I was expecting a half decent return but my total return was $7. I currently claim 2 on line H on the W4. I am going to update my W4 this monday with my employer. Was going to change to 1 but was considering going all the way to 0 on line H. But I want to first know precisely how much this will mean being withheld from each check to make sure it is something I can live with. Is there a way to calculate this? Is there a formula? I looked at one of the turbo tax calculators but it seems to be more for what you are currently claiming and then entering your check info for your already set W4 claim amount. I want to know what kind of withholdings I will have if I change to 0 or even 1. Would appreciate any guidance.
Yes, if you wish to avoid paying taxes when you file next year's tax return, you should revise Form W-4 provided to your employer(s).
See this post for specific instructions: Can I use
TurboTax to update my W-4?
Read more about the calculator here: W-4 Withholding Calculator
And here's another calculator that allows you to compare two W-4 choices: Bankrate Payroll Deductions Calculator