How To Set Your W4 Tax Form to Get a Refund or Break-Even
Published: 2020-01-26
Status:
Available
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Analyzed
Published: 2020-01-26
Status:
Available
|
Analyzed
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The speaker outlines the ability to adjust W-4 form settings to achieve either a large or small tax balance due upon filing taxes, depending on user preference.
"how do I set my w-4 to have a big tax balance due when I do my tax return or how do I set my w-4 to get a small tax balance to my government when I do my tax return"
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The speaker emphasizes that individuals should focus on setting their W-4 to achieve specific outcomes like a small or large tax refund, rather than using outdated methods.
"or how do I get to break-even results or how do I get to a small refund or how do I get to a big refund that's what you need to be asking"
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Correctly filling out the W-4 form will result in the accurate withholding of taxes, leading to break-even results on the tax return.
"so basically if you thought the w-4 form correctly it's going to take out from your paycheck the correct amount of taxes that you should be paying in so that if it's withholding from you an accurate amount of taxes then when you do your tax return then you'll be up breaking a results because you didn't over pay your taxes you didn't under pay your taxes so you are at break-even results"
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Writing 'exempt' under Step 4C of the W-4 form will prevent federal tax withholding, resulting in a large tax balance due.
"how do you get a big balance do you write exempt if you write exempt they're not gonna take any taxes any federal taxes from your paycheck and that you'll most likely have a big tax balance due under step 4 C you need to write in exempt so under 4 C you just write in exempt"
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To achieve a small tax balance due, one should under-withhold taxes slightly by making adjustments on Step 3 of the W-4 form.
"you need to manipulate it where you're under paying taxes in other words you're not paying as much taxes or withholding as much taxes as you should be which will lead you to a small tax balance - but you're not overdoing it like this one so you're using this as your benchmark you're filling up the w-4 correctly and then you're making the adjustments so you're under withholding by a little bit you make that adjustments either on for B or on step 3 my recommendation is to just use step 3 because that's much more easy"
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The amount entered in Step 3 of the W-4 form dictates the total reduction in federal tax withholding for the year, spread across all paychecks.
"whatever number that you in puts in step 3 will be how much less in taxes in federal taxes that they will be withholding from you for the year so depending on how many paychecks that you have throughout the course of the year you know it's 24 if it's bimonthly 26 if it's by weekly it's 12 if you get paid monthly so whatever number that you input there it will be spread out across how many paychecks you get so if you write in a value of 1,000 in step three then they will withhold from you a thousand dollars less in federal taxes throughout the course of the year"
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To obtain a small tax refund, fill out the W-4 correctly and then elect to pay or withhold slightly more taxes than required.
"if you want a small refunds use this as your benchmark you fill out the w-4 form correctly and then you need to pay in or withhold a little bit more taxes than you should be"
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To achieve a large tax refund, use the break-even process as a baseline, correctly fill out the W-4, and then elect to withhold significantly more taxes than required by entering a higher value in Step 4C.
"let's just say you want a big refund it's the same thing you use the break events process fill out the w-4 form correctly as your benchmark and then you have to hold much more in taxes than you should be so it's the same version of this you're just putting a higher value in 4c that way your way over pain and then you would get up much bigger refunds when you do your tax return"
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To achieve a large tax balance due (meaning no taxes withheld and owing a significant amount at tax time), one should write 'exempt' in step 4C of the W-4 form.
"under step 4 C you need to write in exempt"
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Writing 'exempt' in step 4C of the W-4 form will result in a large tax balance due when filing taxes.
"under step 4 C you just write in exempt and that will lead you it's a big bout a big tax balance do it when you do your tax return"
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The value entered in step 3 of the W-4 form determines the reduction in federal taxes withheld from your paycheck throughout the year.
"the number that you in puts in step 3 will be how much less in taxes in federal taxes that they will be withholding from you for the year"
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Entering '$1,000' in step 3 of the W-4 form will result in $1,000 less in federal taxes being withheld annually.
"if you write in a value of 1,000 in step three then they will withhold from you a thousand dollars less in federal taxes throughout the course of the year"
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To have more taxes withheld per paycheck (contributing to a small refund), one should enter the desired additional withholding amount in step 4C of the W-4 form.
"on step four C you need to write in the value of how much more in taxes that you want withheld per paycheck"
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To achieve a small refund, enter the amount you wish to overpay per paycheck in step 4C of the W-4 form.
"on step four C per paycheck right in how much you want to overpay"
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To receive a larger tax refund, a higher value should be entered in step 4C of the W-4 form, leading to significant overpayment of taxes throughout the year.
"you're just putting a higher value in 4c that way your way over pain and then you would get up much bigger refunds when you do your tax return"
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