Page 34 - Tax Withholding Estimator FAQ's

Why does the TWE

recommend that I enter an

amount on line of Form W-4

when I didn't enter any

credits at all?

The TWE uses line 3 to reduce your withholding when
you are having too much withheld. It determines the
annualized amount to put on line 3 that will result in
your preferred refund amount.

My employer has me enter

my W-4 information into an

automated online payroll

system and that system
doesn't allow me to enter

amounts that are not

multiples of $2,000 or $500
(for child and other

dependent credits). How

can I apply the
recommendation provided
Income and by the TWE?

Withholding page

- You may enter multiples of $500 up to

the amount recommended by the
estimator.
- For example, if the estimator

recommends that you enter $1,650 on
line 3 of your W-4, then simply enter
$1,500 in your payroll system; this is
%150 less than the recommendations,

so your expected refund will likely be
around $150 larger than the preference

you entered into the TWE.