How to adjust w4 to pay less tax per pay check?

[ikrammohammad]

How to adjust w4 to pay less tax per pay check?

[awatkins2]

Hi, this is a very good question.    Often times many people will adjust their withholding (W-4) to have less taxes taken out per paycheck by simply checking the exempt box.  This is the wrong way of doing thing.  You should 1st try to figure out how much in taxes you will actually owe.  The first thing you should do is use a tax estimator, here is a good one to use:  https://turbotax.intuit.com/tax-tools/calculators/w4/     You can also read all about how to estimate your withholding here:  https://turbotax.intuit.com/tax-tips/irs-tax-forms/how-to-estimate-federal-withholding/L99CO0yTK   .   Once you have used these links,  contact them to submit a new W-4 to them.   If you do not do it this way you will probably have a large tax bill to pay with your tax return and can even incur penalties and interest so please be careful with your withholding.

[ikrammohammad]

My aim is to get 7500 EV tax rebate 😎

[awatkins2]

Please make sure the dealership give you a certificate you can claim. The EV rebate from the IRS is very complicated and many vehicles have reached the IRS rebate limit.   You can review the rebate phase out for the vehicle you are about to purchase on the IRS website and make sure you take the checklist with you.  https://www.irs.gov/credits-deductions/credits-for-new-clean-vehicles-purchased-in-2023-or-after