Why is my tax refund so big? Can I fix my W-4?

Every year my tax refund keeps getting bigger. This time it’s over $5500. I’d rather have that money in my paycheck throughout the year instead of getting it all at once.

I have a fixed salary and no overtime. I know I need to adjust my W-4, but every online tool I use just tells me to take the standard deduction.

Is there a way to fill out my W-4 so I see more money each paycheck instead of waiting until tax time?

Try the IRS withholding calculator. It’s down for maintenance but should be back soon. Check again in a few days.

Blane said:
Try the IRS withholding calculator. It’s down for maintenance but should be back soon. Check again in a few days.

Yeah, I saw that too. Hoping it’s back up soon.

This is why I went exempt this year. Still getting around $3K back, but at least it’s better than the $7K I used to get. We were paying about $5K in taxes before. I’d rather have that money throughout the year instead of waiting for a refund. The whole system makes no sense to me.

@Avery
I wouldn’t mind just setting money aside in a savings account and writing a check at tax time. I’ve never owed anything before, so it shouldn’t be too hard to figure out how much to save. Maybe I’ll go exempt too.

@Remy
Not giving advice or anything, just sharing my experience. I don’t mind paying taxes, but going exempt has worked best for me so far.

I just use a spreadsheet. Every October, I estimate my taxes and adjust my W-4 by either changing dependents or adjusting extra withholding. Keeps my refund around $500 or less.

Do you qualify for any tax credits?

Which ones?

Marlon said:
Do you qualify for any tax credits?

Which ones?

I file as Head of Household and have a newborn. My fiancée and I live together, but we file separately for now.

I think I can estimate my child care costs too.

@Remy
Those aren’t tax credits themselves.

Do you get the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC)?

Marlon said:
@Remy
Those aren’t tax credits themselves.

Do you get the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC)?

Yeah, I do get the ACTC.

Remy said:

Marlon said:
@Remy
Those aren’t tax credits themselves.

Do you get the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC)?

Yeah, I do get the ACTC.

Your W-4 should be pretty close then. Are you filing as Head of Household for the whole year? That changes the standard deduction. There’s also a spot on the W-4 where you can claim the CTC and ACTC.

Somebody already mentioned the IRS calculator. That’s probably your best bet.

@Marlon
Yeah, I plan to update it to HOH. I’ll use the calculator once it’s back online.

Remy said:
@Marlon
Yeah, I plan to update it to HOH. I’ll use the calculator once it’s back online.

:+1: