You want to increase your take-home pay, which means you want less federal income tax withheld from each paycheck. While this sounds great, it's crucial to understand the potential consequence: you might owe taxes at the end of the year, and potentially even face an underpayment penalty if you under-withhold significantly.
Use the IRS Tax Withholding Estimator: This online tool helps you determine the right number of allowances to claim based on your financial situation. https://www.irs.gov/individuals/tax-withholding-estimator
Claim Dependents and Other Credits: If you have qualifying children or other dependents, claiming them here will reduce your withholding.
4(c) Extra Withholding: This is the line where you specify an additional dollar amount you want withheld from each paycheck. To increase take-home pay, you should make sure this line is BLANK or set to $0.
https://turbotax.intuit.com/tax-tips/irs-tax-forms/what-is-a-w-4-form/L2NapDzX2
Please be aware that the biggest risk of adjusting your W-4 for more take-home pay is that you could end up owing taxes at the end of the year. If you owe more than a certain amount (generally $1,000), you might also face an underpayment penalty.
@Thania42 Thanks for the question!!
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