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posted Jun 4, 2019 5:43:12 PM

What are the pros and cons of claiming a dependent on w4 throughout the year as opposed to just at the end of the year?

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1 Best answer
Level 15
Jun 4, 2019 5:43:14 PM

Your W-4 is the document you fill out for your employer to indicate how much tax you want the employer to withhhold from your pay.  So it affects the amount of your "take home" pay, and it affects whether you might owe on your tax return or get a refund. Your W-4 does not go to the IRS.  Claiming dependents ("allowances") on your W-4 does not dictate how you have to file your tax return.  When you file your return, you enter your actual dependents, which of course affects your tax due or refund.

Having too many allowances on your W-4 might make you end up owing when you file your tax return; having fewer allowances means more tax will be withheld from your pay--resulting in either at least not owing, or possibly a refund.

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

2 Replies
Level 15
Jun 4, 2019 5:43:14 PM

Your W-4 is the document you fill out for your employer to indicate how much tax you want the employer to withhhold from your pay.  So it affects the amount of your "take home" pay, and it affects whether you might owe on your tax return or get a refund. Your W-4 does not go to the IRS.  Claiming dependents ("allowances") on your W-4 does not dictate how you have to file your tax return.  When you file your return, you enter your actual dependents, which of course affects your tax due or refund.

Having too many allowances on your W-4 might make you end up owing when you file your tax return; having fewer allowances means more tax will be withheld from your pay--resulting in either at least not owing, or possibly a refund.

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

Level 15
Jun 4, 2019 5:43:15 PM

Given all the tax law changes for 2018, refunds are likely to be delayed when one files in early 2019. Why give the govt an interest-free loan all year?