CAn you have 0 allowances withholdings on your paystub for state and more than 2 or 3 for federal to get a higher pay stub or would need to have more than 0 on state?

[lmclaughlin9605]

I just help with my withholdings w/my state and federal. I got 3 kids all over 16 and under 20 and I dont get state taxes back. Any ideas?

[AmyC]

Zero allowances withholds more than if you claim 2 or 3 allowances. State and federal can be different. The fewer allowances, the bigger your refund and the less you have each payday. It is a trade-off. Do you need more money in each paycheck or do you need a bigger refund- your choice. You do need to be sure you pay enough to not have penalties.

Your state refund is based on several things. You probably live in a state that offers credit for kids and yours have aged out. Most end when the kids become 17. There may be other credits like rent or homeowner's, other home related items. For most states, it is simple math - here is the income, here is the tax, what did you have withheld. You seem to have reached that point that if you want a refund, you need to have more tax withheld at work.

[lmclaughlin9605]

Thanks. I wonder why I never get state taxes back though. So if I wanted more on my paystubs i need to make my federal and state have more allowances than 0 and if I wanted a bigger refund i need to stick with mainly 0 allowances the whole year right? I was told to use 0 to get a state refund back.

[SusanY1]

That is right.  Some states, especially those with flat tax rates, have the withholding dialed in so accurately that getting a refund or owing taxes is pretty rare.  If you're in one of those states that could be issue and there may not be any method that allows for them to over-withhold.  

[lmclaughlin9605]

Well if it makes any difference, I am from NC.

[Vanessa A]

NC has a flat tax rate of 4.5% for 2024.  However, they do allow itemized deductions and child deductions.  If you are trying to get a larger refund, then you can enter an extra amount you want withheld every pay period on line 2 of the NC-4.