Page 35 - Tax Withholding Estimator FAQ's

Why does it say, " To get your desired refund amount, you will

need $X withheld from each paycheck, $Y less than your current

tax withholding." And then it says to " Enter $Z in additional

withholding per pay period (Line 4 (c) on Form W-4 is already

pre-filled in the Download button below)" ? Why are these

numbers different?

t
- If someone doesn? submit any Form W-4 to their employer, the employer
withholds a ?baseline? amount from each paycheck. Submitting a W-4 to

your employer indicates how to deviate from that baseline amount of

withholding in order to achieve your desired refund amount.
- In your case, you will need a total of $X withheld from each paycheck for

the balance of the year, which is $Y less than your current tax withholding.

- This means that your previous W-4 must have requested an additional
amount to withhold from each paycheck (over and above the baseline) that

was larger than $Z.
- So, reducing this amount to $Z will reduce your withholding and help you

achieve the refund amount you prefer

TRAINBYUS: TRANSFORMING DIGITAL LEARNING