Can we do this in W4 to increase withholding?

[Mr-B]

Both me and my spouse are in W2 jobs. We usually file taxes as "Married filing Jointly"

We want to increase the withholding in one of our W4s. But we don't want to use "4.c - Extra withholding" option in W4.

Instead of that, can we select "Single or Married filing separately" for 1.c in one of the W4s to increase the withholding?

Is it legally correct to do so?

[Katherine S 63]

Hello,

Great question!!

It is not illegal to claim the wrong filing status.  I would suggest you try the W4 calculator to see how the change helps you.

How to fill out a W4

W4 calculator

Form W4

I like the idea of also checking into a tax estimator to see how much you are estimated to owe or get back.  You can use these two links:

IRS Tax estimator

Tax caster

Please give me a thumbs up if this was helpful.

Katie S.

[Mr-B]

Thanks.

I tried the W4 calculators from turbo tax and IRS. They are not helpful for my use case, because they ask for some data from current paychecks.

But we are looking for this info to update our W4s for 2024, our salaries will be different in 2024.

[fanfare]

lots of married taxpayers use "Single" status to get higher refunds on Tax Day, as a form of enforced savings.

@Mr-B 

[Katherine S 63]

I always like using line 4C to add extra withholdings.  It is fairly simple.  You just do a tax estimator and then see how much you will be owing.  Then you can figure out how many times you are paid per year, divided the amount you will owed by the number of times paid.  Add that number to your line 4c.

Here is an example, you owe $10000 on your 2022 tax return and you are paid every 2 weeks.  Take $10000/26=$385 that would be added to 4c.  

If you go in now and see you will owe about $5000 then you will only have a few more pay periods for 2023.  I would suggest doing the same math but sending in an estimated payment to make up the amount that will not come out of a check.  So $5000/26=$192.31.  You will pay that maybe 3 more pay perioed and then the rest you would pay with an estimated payment.

Hope that makes sense.

Katie S

[Opus 17]

There are no legal issues.  If you are under-withheld (by claiming too many exemptions and adjustments) you can be subject to a penalty if you owe too much when you file.  Having too much withheld is just an interest-free loan to the IRS.

Yes, changing one W-4 to single will increase the withholding.  If you want to know exactly how much, the withholding formulas are in publication 15-T, although it will help if you are an "extra-mathy" person.

https://www.irs.gov/pub/irs-pdf/p15t.pdf

In general, I would suggest that whenever your wages or jobs change, you may want to use the IRS withholding calculator.  

https://www.irs.gov/individuals/tax-withholding-estimator

It does require at least one paycheck at the new job or new wage, but it will tell you what your tax position will be at the end of the year if you make no changes, and will suggest changes you can make if you want a larger or smaller refund. 

[Mr-B]

Thanks @Katherine S 63

I'm wondering how does it work for hourly salaried job's W4?

What happens if we enter additional withholding of say $500 per pay period. But get only $400 as salary for a pay period because we took a vacation during that pay period.

How much will be withheld in that pay check?,   Will it go negative and next pay check will have more than $500 withholding?