How to reduce employer federal tax withholding

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xencfw
Posts: 21
Joined: Thu Nov 15, 2012 10:22 pm

How to reduce employer federal tax withholding

Post by xencfw »

I just did my taxes and I am getting a refund this year. I normally do not get a refund but due to the tax law changes my taxes went way down. Although I appreciate the money back I do not desire to receive a refund check a year after I earned the money. I prefer to have less money withdrawn from my check all year but I'm unable to see how to do this on the DFAS mypay site.

The mypay site only allows you list the number of people in the household, change if you are single, married, want to be taxed at the higher rate, want to increase your tax withholding. I found no way on the site to reduce withholding other than to make up dependents but there is a warning about lying about dependents.

Anyone have ideas on how to get work to reduce the tax withholding?

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Jokerswild
Posts: 115
Joined: Wed Feb 22, 2017 5:58 pm

Re: How to reduce employer federal tax withholding

Post by Jokerswild »

You can change the number of exemptions on your W-4. To figure out what works best for you, you can use the calculator on the IRS website. You should be looking at this at the beginning of each year or when a significant life event happens to find what works best for you. Your goal should be by the end of December having the least amount of federal taxes withheld without owing anything
Shawn AKA "Joker"

"How many millionaires do you know who have become wealthy by investing in savings accounts? I rest my case." - Robert G. Allen

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Billionair
Posts: 271
Joined: Wed May 02, 2018 11:27 am

Re: How to reduce employer federal tax withholding

Post by Billionair »

I like smartasset for tax and paycheck information, they have a lot of useful information as well.

https://smartasset.com/taxes/tax-return-calculator
-What we do in Life, echoes in Retirement-

anomadtoo
Posts: 61
Joined: Thu Jun 13, 2013 10:23 am

Re: How to reduce employer federal tax withholding

Post by anomadtoo »

I was going to say also, change your W-4. You are not making anything up where you need to worry; you are simply adjusting your federal tax which you desire.

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evilanne
Posts: 2067
Joined: Thu May 14, 2015 6:52 pm

Re: How to reduce employer federal tax withholding

Post by evilanne »

Did you count the dog or cat? ;)

xencfw
Posts: 21
Joined: Thu Nov 15, 2012 10:22 pm

Re: How to reduce employer federal tax withholding

Post by xencfw »

It sounds like there isn't a solution via mypay and that I should do a manual W-4 to HR.

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Jokerswild
Posts: 115
Joined: Wed Feb 22, 2017 5:58 pm

Re: How to reduce employer federal tax withholding

Post by Jokerswild »

xencfw wrote:It sounds like there isn't a solution via mypay and that I should do a manual W-4 to HR.
On MYPAY, directly under Taxes, is Federal Withholding. You can adjust your W-4 that way up to 10 exemptions
Shawn AKA "Joker"

"How many millionaires do you know who have become wealthy by investing in savings accounts? I rest my case." - Robert G. Allen

chi7834a
Posts: 30
Joined: Fri Oct 06, 2017 3:26 pm

Re: How to reduce employer federal tax withholding

Post by chi7834a »

Just write a check to me at the end of the year. Problem solved.

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mjedlin66
Site Admin
Posts: 1586
Joined: Wed Oct 02, 2013 7:51 pm

Re: How to reduce employer federal tax withholding

Post by mjedlin66 »

xencfw wrote:I just did my taxes and I am getting a refund this year. I normally do not get a refund but due to the tax law changes my taxes went way down. Although I appreciate the money back I do not desire to receive a refund check a year after I earned the money. I prefer to have less money withdrawn from my check all year but I'm unable to see how to do this on the DFAS mypay site.

The mypay site only allows you list the number of people in the household, change if you are single, married, want to be taxed at the higher rate, want to increase your tax withholding. I found no way on the site to reduce withholding other than to make up dependents but there is a warning about lying about dependents.

Anyone have ideas on how to get work to reduce the tax withholding?
I think what you are saying is "lying about dependents" is exactly what you are looking for. Should be called "Exemptions". Raise that number, and ignore the warning.
Owner/creator of TSPcalc.com - "Know your numbers"

quidam65
Posts: 25
Joined: Sun Mar 10, 2019 6:40 pm

Re: How to reduce employer federal tax withholding

Post by quidam65 »

The IRS calculator worked great for me earlier this year.

I'm in the opposite boat, I had a large tax bill and needed to adjust it to avoid doing so again in the future. It allows you to figure in any additional income (such as interest, dividends, etc.), which in my case had me taking out additional $ after zero exemptions.

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