Tax payment

Forum|Forum|4 years ago
June 9, 2022
1 reply
4 views

To reduce my tax payment, should I increase my withholding for my 401K or change my W-4?

Not A Product Question

Critter-3

Level 15

Either or both your choice.

NCperson

Level 15

@Didi66 however, if you adjust your W-4, then each dollar withheld for federal will reduce what you owe on April 15th by the same dollar,

but if you contribute more to your 401(k), then each dollar contributed will only reduce what you owe on April 15th by your marginal tax rate (probabably 12 cents to 22 cents for each dollar contributed)

Tax payment

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