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User ID 4993393
Level 1

Single W4 how to minimize tax?

I am single, no dependents, I have multiple W4s as I work part-time for maybe 5-10 companies, there will be even more of those by the end of the year. Each "job" is a small paycheck - e.g. 20 hrs here, 10 hrs there - and not regularly, on and off. I work as a sampler inside grocery stores so those are 3-6 hr shifts maybe once or twice a week for different stores. I would like to have minimum possible tax withheld. Last year I paid "more than $1000 in taxes" so I cannot claim that line that was there before "exempt if you paid less than 1000 last year". So now, this year, as I work,  each paycheck is taking out WAY too much taxes, because there are no 1 or 2 that I can put like on previous year's W4 forms. What can I do on this new W4 to minimize the tax withheld from each paycheck? I do not worry about having to pay tax when filing the 2022 return - because I know I will have a loss from the rental real estate I own to offset any tax liability from W4 work. I want to receive more money each paycheck now. Thank you

1 Reply
conniem123
Employee Tax Expert

Single W4 how to minimize tax?

Hi ,  It can be tricky to find that sweet spot of withholdings so you don't owe too much tax and do not receive too large a tax refund.   I understand you want to have your tax withheld to be minimized, as you also have a rental loss.  The IRS has great guidance on multiple jobs, and entering them on the Form W-4,   use the Multiple Jobs Worksheet on page 3. You will be guided to enter an additional amount to withhold in Step 4(c). While you will need to know the approximate amount of pay for each job, you will enter the additional amount of withholding in Step 4(c) on the Form W-4 for only one of the jobs.

 

https://www.irs.gov/newsroom/faqs-on-the-2020-form-w-4

You could adjust your estimated pay for the jobs.

 

There is a W-4 Calculator that takes you step-by-step through the worksheet,

https://turbotax.intuit.com/tax-tools/calculators/w4/.

 

Once you complete the form, give it to your employer. Then, keep a close eye on your next few paychecks to see how the changes impacted your federal income tax withholding.  It's always a good idea to compare your 2021 total tax from your 2021 tax return to the year-to-date federal tax withholdings from your most recent paycheck from each employer.

 

I hope this is helpful!

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