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2020 W4 questions ?
Does selecting Head of Household deduct more or less taxes than Single from your paycheck? Also on this new W4 form, how does Step 3 for dependents affect your taxes withheld?
3 Answers
- Anonymous9 months ago
Selecting Head of Household reduces the federal income tax withheld.
"how does Step 3 for dependents affect your taxes withheld?" Stating that you have dependents reduces the federal income tax withheld.
Just to clarify, your W-4 has ZERO effect on your actual tax liability.
If your tax bill is $10,000 and you told your employer to only deduct $5000, you will owe $5000 at tax time (plus penalties and interest).
The purpose of the W-4 is for you to tell your employer to deduct the CORRECT amount of tax.
