Respuesta :
If you decrease the W-4 allowances for that tax year, more money would be withheld from your paycheck by your employer throughout the year. This would mean that your refund would be larger than the amount when your W-4 allowances were increased. However, this scenario would also cause your take-home pay to be smaller throughout the year. Know that the number of allowances you claim on your W-4 doesn't impact the tax rate you are subject to, only how your taxes are paid.
Decrease W-4 allowances will increase the tax refund.
Further Explanation:
W-4 form:
The W-4 form is filed by the employee for the determination of the income tax liability. The employee withholds the tax liability of the employee and gives the remaining balance of the paycheck to the employee. The W-4 allowance is a benefit given by the employer to the employee. The W-4 allowance will decrease the withholding amount from the salary of the employee.
The decrease in W-4 allowances:
The decrease in the W-4 allowance will decrease the net pay of the employee because the decrease in W-4 allowance will increase the withhold money from the paycheck of the employee. The decrease in W-4 allowance will result in a higher withholding amount. The employer would withhold a higher amount of paycheck. In case of a tax refund, the taxpayer will receive a higher amount of tax refund because the employer has paid a higher amount of income tax on his behalf.
Thus, the decrease in W-4 allowances will increase the tax refund.
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Answer details:
Grade: Senior School
Subject: Taxation
Chapter: Income Tax
Keywords: Suppose, filed, taxes, received, small, refund, IRS, impact, refund, amount, decreased, W-4, allowances, tax year.
