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Message: <blockquote data-quote="Old One" data-source="post: 2248409" data-attributes="member: 83">QD,The withholding from your paycheck is governed in-part by how much you have made YTD and in-part by how many allowances you claim on your W-4 form.  In general, you will hit "breakpoints" or steps of salary, with a slight increase in the withholding % at each step.In addition, you can exercise some control over the amount withheld by adjusting the allowances claimed on your W-4.  Claiming "0" allowances means you will have the most withheld for taxes at each step.  Each allowance you claim will reduce the amount withheld for taxes.  You can use your allowances to try to "break even" on your taxes...ie, ending the tax year not owing the government any money - but also not getting a big tax refund.Although a big tax refund can make you feel good or help pay off holiday bills...all you have done is give the government free use of your money for the year, for which they pay you no interest and don't even send you a thank you note (as noted by Iron Wolf above) <img src="https://cdn.jsdelivr.net/joypixels/assets/8.0/png/unicode/64/1f61b.png" class="smilie smilie--emoji" loading="lazy" width="64" height="64" alt=":p" title="Stick out tongue    :p"  data-smilie="7"data-shortname=":p" />!  If you find yourself getting a substantial refund each year, you need to adjust your allowances upward to get more money in your paycheck each month.As a general rule, divide your tax refund by $800, drop any fractions and increase the W-4 allowances of the highest paid wage-earner in the family by that number.  For instance, if your refund regularly runs around $2,000 per year - $2,000/$800 (drop fractions) yields 2, so the highest wage-earner would increase their W-4 allowances by 2.Don't confuse allowances by the number of people in your family...they don't have anything to do with each other (that is personal exemptions).~ OO</blockquote>

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