Page 33 - Tax Withholding Estimator FAQ's

ISN'T LINE 3 OF FORM W -4 ONLY

ABOUT DEPENDENT-RELATED TAX

CREDITS?

- That?s the most common need for line 3, but the Form

W-4 instructions make it clear that line 3 can be used for

any kind of credit.

- Tax credits reduce your tax obligation dollar-for-dollar,

so entering an amount on line 3 will reduce your

withholding by that amount over the course of a year.

Line 3 can also be used to reduce your withholding

when you have had too much withheld already this year.

- In fact, the Tax Withholding Estimator also uses line 3 to

account for all deductions and adjustments to income

that would otherwise be accounted for on Line 4(b).

- This allows you to limit the amount of information you

need to provide your employer on Form W-4, protecting

your privacy.

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