How to Increase the Number of Exemptions on a W-4
If you think you are going to have more federal tax withheld than you will actually end up owing, you may be able to decrease the amount deducted from your paycheck. There are two different ways to boost your paycheck: decrease the amount on line 6 of Form W-4 to show a lesser amount withheld, or increase the number of exemptions -- or allowances -- you can claim on form W-4.
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Instructions
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Download and print Form W-4 (see Resources).
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Complete the Personal Allowances worksheet.
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Complete the Deductions and Adjustments worksheet if you are going to itemize deductions, claim tax credits or claim adjustments to income.
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Complete the two-Earners/Multiple Jobs Worksheet on the second page if you are married and both of you work, and your combined income exceeds $32,000 or if you have more than one job and your income exceeds $18,000.
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Transfer the number of allowances from line H on the Personal Allowances worksheet or line 10 of the Deductions and Adjustments worksheet (if you filled it in). If you had to fill out the Two-Earners/Multiple Jobs worksheet, you'll need an additional amount of money withheld; transfer the amount show in line 9 of the Two-Earners/Multiple Jobs worksheet to line 6 of the W-4 Form.
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Tips & Warnings
Only claim the amount of deductions you are entitled to: underpaying taxes could lead to stiff penalties.
References
Resources
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