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?