Reducing the overall federal annuall income taxes paid

[shahinmonsef]

Does paying more (than 0 allowance on W4) for withholding tax during the year (like a few hundred extra on paychecks), reduce my (adjusted) gross income resulting in paying less taxes for the year?

Another words, Could it possibly lower my tax bracket (or %) if I am at the edge ?

[Rainman12]

No, paying more in taxes will Not change your AGI. It will, however, ensure that you owe less for taxes when you file. Your objective should be to ensure that you have at least as much prepaid by the end of the year as you owed in taxes the prior year. This normally precludes having to pay penalties for underpayment.

[VolvoGirl]

No.  What you claim on your W4 does not affect your gross income or adjusted gross income.  Just the withholding that is subtracted from the calculated tax on your income.  The more allowances you claim the less withholding will be taken out for taxes.  Which means you might end up owing on your tax return.

if you get paid $1,000 and they take out 150 for federal withholding your gross income is still 1,000 and you pay tax on the 1,000.  Let's say the tax is $125.  You subtract the $150 and would get a $25 refund on your tax return.   

Withholding is just an estimated amount towards what you will owe on your total income for the year.  If you have other income like interest or dividends without withholding you might want to have more taken out at work to cover the extra income.