changing tax withholding

[DanielB]

Hi all,

I am filling out the form to change the amount of federal taxes withheld from each paycheck. Because of my tuition and student loan interest deductions leading to a large refudn, I have been told in another thread here that this makes sense for me.

I am currently claiming one allowance. In order to decrease the amount of federal taxes withheld from each paycheck, do I need to change this allowance to 0 or 2?

[Slug]

2. The more deductions you claim, the less that is withheld.

[DanielB]

Slug, thanks for the info!

[jpg7n16]

Hey Daniel,

Here's a withholdings calculator from the IRS to help you determine the correct amount of withholdings to claim.

IRS Withholding Calculator

[cjscully]

Hey Daniel,

Here's a withholdings calculator from the IRS to help you determine the correct amount of withholdings to claim.

IRS Withholding Calculator

Changing your allowances to an arbitrary number that "sounds right" can get you into a position where you owe money on your next tax return. Use the calculator as JPG said.