Withholding Inquiry

[hunter 441]

Hello, I am trying to have less taxes taken out of my paycheck so my refund is zero. I used the IRS's Tax Withholding Estimator and I think I need $205 less withheld. My company has its own W4 I can use, I just wanted to make sure I was imputing into the correct field. I attached screenshots, but imputed the amount into field B, which states: 

(b) Deductions. If you expect to claim deductions other than the standard deduction and want to reduce your withholding, use the Deductions Worksheet and enter the result here.

I also know one can increase the number of dependents so less taxes are withheld, but I wanted to do it correctly. The first screenshot is the IRS results from the tax withholding estimator and the second is my company's W4 webpage. 

I want to verify the amount is correct based on the calculator and the field is the right place to put the amount. 

Thank you for your time. Hunter Stanford 

[lramkumar]

Based on the screenshots that I see,  you are correct in your assumption.  You will need to withhold $205/-less from your paycheck than what you have currently.  Also,  please do verify with your HR department that this will get you to where you want to be in your withholdings. 

Another way to reduce the withholdings is to claim more dependents on your W4 so they take out less taxes,  The first way, you will have a more accurate number.

[hunter 441]

thanks for the response! i tried asking my HR dept but naturally they will not answer questions and want to me to talk to a personal tax advisor. 

So I don't know for sure. IF, i put the number in the field and my taxes are down by the specified number, then is that good enough? I don't want something to look way off come tax season. Futher, is increasing my dependents a safer plan if I am unsure of the first way? 

Thank you. 

[lramkumar]

Yes.  if you are not sure of the calculation,  you most certainly can claim more dependents and see how that works for you.  You can try that route for a couple of months and if your tax situation changes, you can change your W4.  The good part is you can change your W4 any time and any number of times in a year.