New W4 0 and 1

[justinw39]

I’ve been at my job for 9 years and have had my withholding set to 0. I recently got married and had a child. I now file Married Jointly but get a large tax refund. I’m trying to reduce my withholding to get more on my check and less of a refund. Ideally $0. 

my employer gave me the new W4 to fill out and the thing makes no sense to me. The online calculator is useless because my paychecks vary by up to $1,000 a check and I get a large bonus every year. So the calculator just doesn’t work. 

I have no idea what to put on this thing to achieve my goal.

[JohnB5677]

If you want to decrease your withholdings, take these steps on your W-4. 

To start with indicate that you're married and have a child.

• Leve step 2 blank
• Step 3(a) = $2,000
• Step 39(b) = $500
• 4(a) if spouse doesn't work and you do not have second job = (0) 
• 4(b)(c) blank
• Sign

[justinw39]

Thank you for the reply! I’m assuming all the extra stuff on the back is not needed in my situation. We just take the standard deduction.

Also when my employer goes to put my info in on quickbooks and yes she chose 2020 and later, it still only has her put in 0 or 1 and so on. So I’m not sure if what I’m putting on my W2 is going to just give me the child tax credit back ($2,000) over the year or is it going to try to get me my whole refund back (roughly) to were I have a small return or even maybe owe a little. Or do I have to do something else to get them to take out less to achieve that?

[DianeW777 · Accepted solution]

Yes, you are correct. There is no need to complete Step 4(b)—Deductions Worksheet since you use the standard deduction.

Keep in mind you can change this form as many times as is necessary throughout the year and your employer must make the changes. I would advise to do one of two things. 

1. Add an additional child even though you only have one child (depends on your refund amount for 2024 and how much you want to reduce your withholding); or
2. Add an amount for credits to the amount in Step 3 or Enter an amount in Step 4 (b) even though you are not itemizing or have other deductions. 

Both of the items can be adjusted until you feel your withholding is sufficient, and not too low or high. The key to the W-4 is to make sure you have enough withholding to cover your tax. One additional note is that the IRS does change withholding tables from time to time which would also affect your total withholding. Check each pay stub and change as needed.

@justinw39