W4 withholding question

[Jpet]

Hello,

My wife and I file jointly and have two dependents. The last two years we've been in a one income household and besides noting the dependents, I'm not doing any additional withholding. We've gotten healthy refunds the last two years, but would like to try to get it as close to zero as possible. My wife also began working this year. Can you advise on how we can fill out our W4s to reduce tax witholdings?

Thank you!

-JPet

[jacquieb]

Hi @Jpet 

Sure! 

You can check your W4 calculations by using the W4 calculator located HERE.

This calculator lets you account for several variables. You can compare these results to what is currently on your W-4 and make necessary changes so that way you don't have as big as refunds as in the past.

Here is another tool that will allow you to estimate your refund once you make the adjustments to the W4. TaxCaster 

Hope this helps! 🙂

[MarshaW-CPA]

Jpet,

You should complete a W4 each year.  Make sure you include any significant streams of income, including stock sales, number of dependents, and any tax credits.  If your wife will be starting work include her income as well using the dual income chart.  The process is much more time consuming than the old way but it is the only way to get a good estimate.  The IRS tool can be found here:

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