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posted Nov 2, 2020 9:24:42 AM

I know I will be getting a refund this year and would like no more withholding

Can I simply update my w4 to show Exempt so that they wont take anymore federal taxes for the rest of the year.  The 2020 W4 is confusing for me and I'm not sure how to reduce the amount but I figure exempt would do the trick.  Just not sure If I'm supposed to do that.

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2 Replies
Level 15
Nov 2, 2020 9:37:07 AM

No, you're not supposed to put Exempt. You don't meet the requirements for it. Use the Tax Withholding Estimator on the IRS web site to figure out what to put on your W-4 form. It will let you adjust your withholding to get the approximate refund amount that you want.


Tax Withholding Estimator

 

Level 15
Nov 2, 2020 9:40:24 AM

If you reduce your withholding now, be sure to adjust it again in January. If you keep your withholding very low (or zero) next year, you'll end up with a big tax bill at the end of the year.