Hello there world, Fist post so please be kind....
Last year I changed my allowances/witholdings form 1-1 to 0-0 (early Jan 2023)...my son is no longer a dependant.
I made roughly $3060 more this year than last year. However less money was witheld for the year. (looking at 12/22 vs 12/23 paystub)....This doesn't make sense to me.
I've made no other changes to income or investments/retirement contributions
Does anyone know what I'm missing?
Thanks for your time
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As part of the Tax Cuts and Jobs Act, the IRS and Treasury adjusted the tax withholding tables, which affects the amount of income taxes withheld from your pay. In 2020, W4's were completely redesigned. Exemptions or Allowances are no longer applicable.
My suggestion is to use the IRS Tax Withholding Estimator here.
Thanks for that info.... I appreciate it, That stinks though.
So, just to clarify, If i hadn't changed anything in 2023 even less would have been taken out of my checks due to this new calculation.
I do realize I'm only feeling the pinch now due to losing dependant and head of household status this year...
I have now added additional witholdings to help offset next year...
I feel like these new changes would have negatively impactd way too many people when it comes to tax time.
your thoughts?
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