Adjusting W4 for 30% ITC credit

[markk42]

I'm having solar panels put on my roof.  The 30% ITC that I will get means I will not owe any federal taxes. I want to adjust my W4 so my employer does not deduct any federal taxes from my income. I don't see on the W4 form any way to do this. 

[Anonymous_]

@Critter-3 

[AmeliesUncle]

The easiest way is to say you have kids under age 17 (step 3 on the W-4).

Each kid (under age 17) results in $2000 less tax withheld from your paycheck during the year.  So if you expect a $10,000 solar credit, then you could enter 5 kids (under age 17).

Just don't forget to change it next year.

[markk42]

Thanks for the suggestion. I was looking for a way to do it without committing perjury.  Just above the signature box is: 

Under penalties of perjury, I declare that this certificate, to the best of my knowledge and belief, is true, correct, and complete.

[Critter-3]

The new  W-4 is tricky but adding dependents is the easiest way to make it work and since what is on the W-4 and what goes on the tax return do not have to match.  On the old W-4 you would simply add allowances which is the same as adding dependents on the new form.  

The only other options are to illegally claim exempt  or  add a large amount on line 4b to represent Sch A deductions enough to zero out your income.  There really is no tidy way to do this which is why I highly recommend you do nothing and simply enjoy the extra large refund this year because you will inevitably fail to change the W-4 back the next tax year and you will cry when you owe.  

[AmeliesUncle · Accepted solution]

Read the sentence next to line 3 ... you can add other credits for that line.  So I guess you don't specifically need to state you have kids, but you DO enter the amount on line 3.