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BenchTest
New Member

Adjusting W4 to decrease taxes withheld

Hi All,

 

I'm trying to understand how the W4 manipulation works.  My situation - My wife and I are Married Filing Jointly.  She is the only one working (two married, one working).  After filing this year, it's clear that she was having too much tax withheld based on our return.  I've done the online calculators and the IRS one shows to manipulate Line 3 of the W4 (under "Claim Dependent and Other Credits").  We have no children/dependents.  I'm confused as to why we'd be manipulating this area that the directions clearly state to skip over if they don't apply to us.  The IRS calculator says to enter an arbitrary number on line 3 and this will reduce the taxes being withheld.  How does this work?

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1 Reply
JohnB5677
Employee Tax Expert

Adjusting W4 to decrease taxes withheld

You have the somewhat unusual circumstance of trying to reduce the amount withheld from your wife's paycheck.

 

  • The method suggested to reduce the withholding by adding "dependents" is a back door alternative.
  • There is a $500 credit calculated on the W-4 for each dependent.
  • Enter one dependent to reduce the tax withheld by $500.

Understanding the Credit for Other Dependents

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