How To Set Your W4 Tax Form to Get a Refund or Break-Even
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- Опубликовано: 24 июл 2024
- Click here for our video on how to fill out a W4 Tax Form: • How to fill out a W4 Form
This is the W4 Explained on how to set the W-4 tax form in order to get a refund, break-even, or even a tax balance due when you do your tax return.
The W4 tax form 2020 is a revised form compared to the 2019 W4 tax form. In the 2020 W4, there are no more such things as allowances. The W-4 2020 eliminated this system. And it will not reappear in the W4 tax form 2021 either. So in this video, we're going to show you how to fill out a W4 form to get your desired results for when you do your tax return.
So this is a more in depth video about the 2020 W4 explained rather than a tutorial on how to fill out a W-4 tax form.
If you want to set up the W-4 to get a big refund, then we'll show you how to fill out a W-4 form in order to achieve that result. If you want to know how to fill out a W4 form to under pay your 2020 tax or your 2021 taxes, then we'll help you with that too.
We hope you enjoy this video about the W-4 explained and I hope this helps you with your 2020 taxes and also your 2021 taxes.
Sincerely,
The ClearValue Tax Team!
Pelosi clearly stole the rip up from you!
OMG thank you for calling her out on that one! Yes, I did that a few days before she did. She totally RIPPED that one from me. Get it? LOL.
At least he didn’t have to pre rip it😂
ClearValue Tax can you help me out with this new tax form bc I use to claim 0 but sick of Uncle Sam taking to much from me so I want to change it to a 1 but not sure how it done with the new form
but trump did not
Pelosi is a beta unlike Chad Trump
4 days. For 4 days i read everything I could when I had time to try and understand the 2020 w4 to full comprehension. I was still confused until this video - thank you
Thank you! You have no idea how stressed out I have been trying to figure this out going from head of household, one dependant, and one job to single, no dependants and two jobs. I can't believe I did not think of looking it up on RUclips sooner. My HR don't know crap. So I have been left to fend for myself. I've looked all over everywhere and have been so scared to make adjustments that would leave me broke! You are my hero today!!!!! Wooooo!!!!! 👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏
You understand how to teach very well and and break things down so that anyone can understand. You explain things we all wish we would have been taught. Thank you! 🖤
Best video on RUclips right now! Thank you thank you! I had been struggling with a lot less in my paycheck in 2020 with the new W4. I'm a commissioned sales rep so I'm taxed heavily and always receive a large refund. With the 2020 W4 I was lost and I couldn't find a good explanation. Your video was great. I went right online and did my adjustments to my 2020 W4 for my payroll. Thanks again!
I'm sooooo happy to hear it helped! Thank you so much for the feedback and kind words, I appreciate it Reeshard!
I am so happy I found you! I am going crazy over this new process! I didn't realize the form had changed, was on maternity leave and had gone exempt to get my xmas bonus. Upon changing my what I thought was exemptions, i listed 6 as I've been doing for years. This triggered no federal taxes being taken out. Call my HR and they said I was now given a deduction as exemptions were removed. I freaked out and changed my form, left everything blank except where it asks if I have kids under 17, I listed 3. Had a federal refund of about 2800 in 2019 (only had 2 kids then, I have 3 now. I just did my taxes and got 4800 back from fed. Married filing jointly with 3 kids. Currently I'm the only one working since daycare insanely expensive. This year I'll make about 60-65K. I definitely don't want to owe and would like a little something back next year. How can I achieve this? If I set the form to maybe take out about $55 a check will I be ok? Or will leaving it with 3 kids will I still be ok? California resident. PLEASE HELP!
You have a new subscriber. This was the only vid I found to confirm that anticipated tax credits can just go on line 3 directly with nothing being on the dependent lines. I know the instructions say it can be listed, but wasn't 100% if there were any other notations needed. Thanks again!
You know Brian, you are pretty amazing. I just want to say thank you for all the information you put out here and I can't believe how many people you answer with their questions. I read through the comments and found my question about the messed up IRS calculator telling me to add additional tax money when I want to drop my refund from 1,500 to 500. Thank you for answering and I can do the math on my own. Just thank you for answering people, it is sooo helpful.
Hi Margie, yes, I have a lot of people telling me the same thing that the IRS calculator is outputting bad advice and recommending you add more withholdings when you trying to reduce the withholdings. Perhaps the IRS is trying to trick you for their own benefit? haha, jk. And thank you for the kind words. I'm just trying to help as many people as I can! But thank you again for your kind comment and your support Margie!
Did they fix the calculator?
It's needs to be disbanded
This video helped me out SO MUCH. I have never understood taxes and have always put exempt since my first job…I now owe MAD money…but I also now know better thanks to your video. Thank you so much
This needs to be taught to kids in middle school...
My 12 yr old son was just saying the same thing!
High skool
Amerikkka doesn’t want us to be great without them being in control
Why? How many middle school kids are filling out W-4s??
@@mr.mikedaniel2376 be that as it is in their current circumstance
The extent of which taxes affect us all
Demands knowledgeable to the proficient degree at an early age
It is funny watching older videos of B and still seeing his passion hasn't changed! Thanks for this video, as I wanted to get closer to the Small Balance Due. Thanks!
Good information! The irs is not clear, thats why we have CPA/lawyers. What I enjoy about your videos is that you speak to me as I’m a 4 year old. You keep the IRS bs so that I can get my head around there wording. When I was working it was tough. Then have to worry about my taxes at the end of the year. I would often say,”Why did I do that extra work/money only to pay extra taxes and not spend the time with my family “ Been together family 35 years, 71 years old now and divorced . Hopefully your readers will understand that , not having a good CPA could add extra havoc ... Bob
For such a complicated NEW form you broke it down for dummies! Thank you sir, you rock!
Thank you Josh, YOU rock!
Clear, concise and simple! Much appreciated, Bryan!
Perfect. I was really clueless. This was the simplified version I needed.
Love your channel, am an aspiring CPA/Accounting Student and your videos are very inspiring!
This was by far the BEST breakdown I have seen so far! Kudos!!
Love the way Brian explain Taxes...thank you sir!
OMG thank you so much for this simple explanation!! I was going crazy trying to figure out the new w4 form. Great video
Thank you!!!! seriously, all the other videos people don't take the time to explain each step the way you did!
Thank you, thank you. I have to change my withholding and I was totally confused with the new process.
Thank you for making a clear cut video that explains everything in detail! We appreciate it !
This is the Content that makes SENSE! Thank You. Keep it quick and simple. It makes sense.
Man you are better then most these pastors out here I appreciate this gospel you just preached 🙏🏽
Thank you very much for this video instruction. Very helpful to us that aren't tax savvy
Wow, you are the accountant of the future, or the accountant Apostle.
Very straight forward explanation.
Thank you.
That's the first time I've been called that, thank you Angel Torres!
Very helpful! I feel like you never get the credit you deserve for the work you do, Thank you !
there's a tax pun in there somewhere. well played. 🤣
Thank you for this video. I just filed my taxes for 2019 and was in tears over how much I owed. I was claiming S-2 on my Federal when I lived in Texas, but moved to California and never adjusted it. (RIP my wallet) I requested a new W-4 and was completely unfamiliar with it (which just made me feel worse) Here's to hoping I don't owe in 2021!
I'm sorry to hear that happened Lauren =( Yes, let's make sure that doesn't happen for 2020 when you file those taxes in 2021. Thanks for watching and for your support!
Oh LMAO California doesn’t play. Born and raised. Currently being taxed $1300 per month on my measly 68k salary. That’s why I’m on this video - hopefully I’ll figure out how to manipulate step 3 to have more money per month and owe just a few hundred dollars 🤞🏽
Great video. Very clear very simply put. Thanks a lot!
Why do I have to spend time trying to figure this out? The IRS is a joke. They know exactly how much we should be paying and they take extra by default.
4th class of your teaching today. I'm going to have to rewatch I must say. Is there a % one should use to set aside if you want to pay more on April 15? In addition if you have to pay in a lot won't you be required to pay quarterly taxes if your not a business and work for a business. Once again thanks for class.
Hi Comment, that's hard to answer since how much you should set aside depends on your income level, as your tax rate depends on your income levels. But you generally don't want a big balance due, if you do, you could be getting penalized for the underpayment penalty.
This change on the w4 forms are gonna screw a ton of people next tax season...
What about soc.sec
People!!!???
It did! We owe over $2k after using the estimator tool last year!!!
Yeah I got screwed this year lols, you a psychic
Yes i'm one of them owe now over $3k! :(
Yup. They fucked a lot of ppl
That recommendation around step 3... very helpful and simplified it nicely. Thank you!
Thank you for this... was extremely helpful !!
Thank you for this information. It is very much needed and very educational!
If you don't already do so, you should teach. Outstanding job.
I'll do this after I get my next job. Thank you so much sir!
Please do one of these for the 2021 w-4 form! I want to break even or get a VERY SMALL refund. Married, filing jointly. Make under $40k per year. Used to do M-2.
I’m so confused by all of this….thank you!!! This helps
Thank you for making it clear and concise to understand
I love you man. All i needed was to write exempt. I pay over 37k in taxes and i want to invest it to gain interest before paying it back.
I’d love to do this but have read the irs will penalize you at the end of the year if you claim exempt without qualifying. Any thoughts on this?
You drop such good knowledge, thank you.
What are the penalties and ramifications of claiming "exempt" or increasing the dependents claimed (when you have no kids) in regards to the goal of keeping as much of your paycheck throughout the year. I.e owing the IRS during tax season instead of receiving a refund.
Hey Brian, you should do an update of this video since w4s changed in 2020. I recently got screwed by my own ignorance. I am married filing jointly with a second job, my wife also works. My weekend job was not withdrawing any federal income tax and now not only am i not getting a refund, i owe the feds big time! We are blessed enough that it isn't going to break the bank but still...
didn't learn anything from this. basically your answer is to read the W-4 form and fill it out correctly. I'm not a tax professional and don't understand legal/tax jargon. If I did then I wouldn't need to watch tax videos.
Thank you bro I put my value on 4c instead of 3 at first and was wondering why my check was so low I'm trying to owe a bit
Do you have any youtubes that we can use to teach Working Minors how to file their taxes, I've used your 2020 W4 youtube in class, so they know how to complete it properly. Thank you
Awesome, and thank you so much Mrs Whetzel, I appreciate your support! Unfortunately, we don' t have a video covering that topic, but you know what, that's a GREAT TOPIC to discuss. Thank you for your suggestion and feedback, I appreciate it a lot and it helps a lot!
I came to realization that nobody really know how to fill the w4 withholding form
I did exactly that for small balance.. and manager said I did it wrong etc but clearly I had it right according to this explanation.
Great video! Easy to understand. You should have a higher audience count for the content your providing.
Thanks again wishing you continued success!
Thanks so much tlbue32! I appreciate that comment and that feedback. I've had my tax practice for 10 years and I just started making these videos for fun just last year. It seems like people are enjoying my videos so I think I'm going to keep at it! Thanks for the encouraging words tlbue32!
I think I figured out the problem with the IRS withholding calculator. If you run it through at your current withholding (i.e. from your 2019 or earlier W-4) it does show you a good estimate of what your refund will be at that much less accurate annual withholding but with your accurately calculated 2020 tax liability. If you're fine with that refund amount, it obviously suggests no changes to your W-4. However, if you try to adjust your refund at all up, down slightly, or all the way down to $0, it assumes you'll be filling out a new 2020 W-4 with the new, more accurate withholding tables. That's how I was getting a suggestion to withhold extra even when I wanted my refund to go down. It looks like, for me at least, the new withholding tables are only about $400 off from my expected 2020 liability, so any attempted refund adjustment higher than $400 would require extra withholding beyond the new tables.
Good find and thank you for sharing Rural Jefferson. I'm pinning this message for people to see. Thanks so much again!
Margie Kaiser Yes, it was that way for me anyway because I’ve already had two pay periods and will have a third before the new withholding will be applied to me.
My experience, doing both payroll and taxes, the withholding tables now are low. I almost always override the withholding to 10 - 12% fed and 5% KS. In 20 years, this is about where most of my clients wind up most of the time.
Thank you very much for explaining this! I do have a question in regards to inputting this information to Quickbooks Plus Online. Not sure if the amount should still go in the "Dependents" box?
This was so easy to understand. Also I was able to do this properly using the IRS tax calculator and chatgpt to figure out my YTD earnings.
You posted this on my birthday. Thank you for sharing!
Happy belated birthday Oblong Polka Dots!!!! How old did you turn 21?
@@clearvaluetax9382 Close, 41! Thank you! :)
Sorry little late watched so many videos thank you !🙏 but quick question? Since I claim my child already in step 3 for 2000 if I manipulated and input 4000 that’s what I would need to do? Need a little explanation on that other then that great videos 🤙🏼
Excellent teaching and love the graphics. Keep helping us. It is greatly appreciated. Love your energy and the way you share your expertise.
Thank you!. Even though I am married with 2 kids my wife and I claim single with no dependants to ensure we never owe taxes and use the return to invest into college funds, retirements accounts, and or health/dental/life insurance fund for the next year.
We do this by using high yield savings accounts or cds.
Never understood this thanks for explaining 👍🏻
Thank you, Thank you!!!! Excellent explanation. 😎
Ah thanks sooooo so much Skylar, I appreciate it!
Thank you. Either my wife or I are filling out our W4 incorrectly. We think we are doing it correctly but we end up owing $5k+ each year.
What a great video. Some times I wonder why I did not find videos like yours when I really needed to understand how fill the W4 form. Overpaying would be a good way to "force" your self to save, except that the one making any interest is the IRS. Instead of giving your money to the IRS to use for free, do you have the self discipline that it takes to just transfer x amount of money from checking to savings. Thanks again.
Yes, I'm so happy you saw this video! I'm trying to prevent as many bad surprises as I can for when people complete their 2020 taxes in 2021. Thanks again for your support E Galindo!
Can you still check " married filing jointly" and "exempt"? My wife changed schools and they are taking about 45% of her pay in fed tax. I have all we need deducted from my check so I need hers at. zero or nearly zero.
Will putting down head of household vs single take out more from my paycheck or will I keep more?
Thank you so much for the video! very helpful info
I'm so happy to hear that, thank you for the feedback msj5210! I appreciate your support!
Thank you! U made it understandable!
Does writing exempt in part 4(c) mean you opt out of federal,state, medicare and social security? Or is it just federal?
Hi, married fill jointly and have 1 child. Want to break even, what to put into step 3? Thanks so much!
I have no dependents and want to break even. Do I put the amount I want withheld on the “total” line in step 3? Do I have to write in names in that section?
Filing married jointly-Does it matter on the form whom claims the dependents? My dependent is not with my current husband. I have always claimed my dependent on my taxes. However with this form I am not sure whom would be claiming that dependent.
Okay I have a question: If I did exempt and only wanted to use that method for a few months, will I be able to adjust it before the end of the year?
Regarding Step 3 you mention I do not need a dependent (Dependent implies a person like a child or elderly? Which I do not have) If I want a 1000$ of less tax taken out do I fill out the the second portion where it’s increments of $500? Or do i enter this in the total?
Hi! Thank you for your reply! Then what should I do?
Hi Ishta, if you didn't see it, if you don't have a kid, then you'll leave STEP 3 blank (don't input $2,500). If you do, you'll owe $2,500 when you do your tax return.
thanks for the info, i learned some new things!
Hi I just came across your video recently started a new job this year and filled out the new 2020 w4 form and so far I have receive 5 checks and none have federal tax being withheld. I usually file single with 2 dependents and usually get a large refund, now I’m concern I might owe or not get a refund at all. I’m not sure if my gross income for this year but I’m estimating 16000 to 20000. I usually make around 17000 a year in the past. Thanks in advance
You have to meet certain criteria in order to claim exempt from federal withholding
taxes. I do payroll and I've gotten letters from the IRS demanding my company to start withholding from employees who thought they were exempt.
Yes, but some people qualify to claim exempt.
@@clearvaluetax9382 how do I know if I qualify? I have an LLC aside from my W2 job and would rather just assume I'm going to owe on all my sources of income and not give the gov an interest free loan
Can you show how to fill out step 3 and how much we should put in step three to have a small amount due?
I've watched several videos on this subject, and your video is the only one that helped me understand it. Thank you!
Thank you Charlie, I am so happy to hear! This feedback makes me so happy knowing that I'm explaining it clearly enough. Thanks again for your support!
this dude had like less than 50k subs pre covid. he became THE ASIAN news guy to go to during the pandemic. well over a million subs now. lol. great job.
Hi Brian, I have a tax question. When I first started with my company they took out state income taxes for WI; I live in TN. I was eventually refunded the money. However, I have received my W2, and box 15 has WI. I still live in TN. I was advised the W2 is correct. Box 15 has WI because I was refunded the money. But when I enter this information online, I am paying taxes. Shouldn't box 15 reflect where I live?
I was trying to understand the allowance changes between 2019 and 2020, and found your video. Yes, I'm two years late, but was researching this anyway. It sounds like to get your "small balance due" you state to use a workaround using step 3. Looking at step 3, it seems like the options are to enter in the number of kids and/or the number of other dependents to get your numbers. If I don't have any kids but claim say, two, isn't that technically fraud? OR, are you saying just manually enter in a number in the "add the amounts and enter total here" field and this is ok?
Just subscribed to your channel after watching a few stock tax vids from you. Thank you for all the good info by the way! I am single with 0 dependents and 0 claimed allowances on my w-4. I make about 50k a year net. The last 3 years I receive about 5k back as a refund. How do I set up my w-4 form to where I will only get a smaller return and bigger paychecks throughout the year ?
I'm in a similar situation. Did you find the solution?
Same! Help!
I have a unique tax situation. I travel for my job randomly throughout the year. When I do, I make significantly more. I struggle to balance my taxes because of this so some years I owe very little. Some years I owe a lot. Any advice?
Thank you very much for your video. As an employee when I fill out the
Form W-4, Employee's Withholding Certificate for federal and state, may I choose different allowances in W -4 for Federal and State? I mean, 0 allowances en W-4 form Federal withhold certificate and 3 allowances in State W-4 withhold certificate? I really appreciate any guidance about it.
i actually have an exempt box. i viewed another video that said to put 10 instead of fully exempt. does that mean exemlt for 10 pay checks?
Excellent Information. Thank you, sir
Thank you for the feedback and kind words Byron, I appreciate it!
Thank you very much for the response I have subscribe to ur channel I am looking forward to watching all ur videos keep it up very informative..
Thanks so much Miguel for the kind words, it's very motivating to me! And thank you for the support, you're awesome Miguel!
great video, quick question: I would like to save money for project $8000. If i opt to pay $310 on Step 4 (c) for an entire year. Will i get all that back? I would like to use this as a short term saving method? I appreciate that there is no interest earned (but my bank pays next to nothing either). thank you
Hey Brian, thank you for this informative video. I had a question on how to set my W-4. I really want a small balance due. I'm single, no kids, with mortgage, closed the year with $180k. I paid a whole lot of taxes the entire year. I want to try your Step 3, I really like to have a small balance and still pay taxes. I'm paid biweekly. I just don't know how much I should enter on step 3 to ensure that I'm still paying the proper tax I need to pay so I don't owe to much but keep some of the money throughout the year.
Are you single?
You can go onto the IRS website and mess around with how much tax you want taken out of your paycheck. You can even have the W4 autofilled to the correct adjustments ready to be sent to your employer.
It’s called the tax withholding calculator on the IRS website.
I make 130k a year plus your 180k that puts us at 310k a year. I’m 6 ft tall tanned and handsome latino. Tattooed. Let me know
So if we type the word "exempt" on Step 4c where it says "extra withholding", should we NOT put anything in step 3 "Claim Dependents" section? Or can we still leave step 3 filled out in addition to writing "exempt" on step 4c? I only have 1 dependent if that helps to answer your question.
I have a temporary internship right now that calculates my paychecks as if I was working for them the whole year and making 70k, though I make hourly. However between this and my planned summer internship I expect to only make at most 35k. I don't mind a refund, but I would like as much money on hand to pay for a car soon and avoid taking out loans while finishing grad school. Can I still claim exempt on the first job to quickly save for the car, then pay what I think I need to on the second? I thought you couldn't expect to have a liability which I do.
Also I might be able to waive the liability with the AOC, but will buying say a 20,000 car with cash count as providing my own support so I can claim both myself and the credit? I permanently live with my mother and don't pay rent, but she only makes around 25k. At my income level I will probably save more than she can get claiming me for a child credit one more year. To explain since I am talking about grad school, we have never been eligible for it in the past because my undergrad scholarships and grants have always been greater than my qualified expenses. This will be the second time one of us claims it for me, assuming she does for 2019, and I am still an undergrad until May 2020.
There is one part that confuses me. I want to do one of the new w4's to break even. However, we are already in March, or 5 paychecks in, as I get paid biweekly. How do I account for the overpayments I have already made? I know you said they take it out over the whole year, so how do I make up for what I already overpaid to still end up at a break even point?
I enjoy your explanations! Easy to understand! Question......since I have a pre-tax 401K and a HSA, these $$$ amounts are deducted prior to my taxable income. I assume that the Federal tax is calculated on the reduced amount. I work and my wife does not. If I fill out the W4 Married Filing Jointly, the taxes amount will get me to break even? Correct? If I have interest income that I claim at year end, do I add extra withholdings to cover these additional taxes? If so, how much? Also, how do you read the confusing table on the W4? This makes no sense to me??
Hi Kevin, if you claim extra withholdings, then that should take care of the taxes on the interest income. So that should lead you to break-even. And you wouldn't be using the tables for the W-4 if your wife doesn't work. That's only if both spouses are working. I hope that helps!
Hi there Bryan, - I'm hoping that you can find the time to answer a quick question for me. When completing last years taxes my wife had two jobs - hence two W4's and i noticed on one of them one of her employers failed to deduct ZERO federal taxes and i ended up paying like $6K. Wasn't it her employers responsibility to stop the federal taxes.??
Very useful information since I discovered your videos a week ago. I’ll be a getting a mid size refund this year. Claimed S0. I usually like to go exempt on maybe 3 or 4 paychecks throughout the year. I get paid bi weekly. Assuming I can do the same this year?
Hi Scott, yes, you can go exempt for a few paychecks, just please don't forget to change it back! Thanks for watching and for your support, I appreciate it!
I claim S0, and do the same thing Scott does throughout the year. Where exactly do I adjust the allowances or exemptions in the new w4? Is it in step 3 where it asks me to enter the total amount or no?
@@lordcavender there's no more allowance on this new form. I was wondering if we could just write more dependents. I used to write 8 allowance in the older form. But now I have no idea. I was just thinking of writing EXEMPT for about 6 months and then changed it to 1 dependent. Don't know what to do🤔
If I choose EXEMPT, how much percentage should I put away to pay taxes later? I'm thinking I could save it in a high interest savings account. Keep the interest and pay uncle Sam at the end of the year.
You are a genius. Thank You 🙏🏾.
Do you suggest filing exempt for 3 months for a 22yr old like me who makes around 35k a year?
When put in the over payment amount to receive a bigger payment during tax season is it a dollor amount? Or a percentage? **reminder I am married and have 1 dependent
Thank you so much for this video. It gave me a lot of information about the new W4 form. I wanted to make changes to the new form, but how can I fill out the form to get all my money, without paying any taxes and have a big balance due. I was told by payroll that I can't put EXCEMPT on box 4(c). I have an income of 22K a year and have 2 kids. Single parent.
Hi Izzy, that sounds awful they won't let you go exempt, because you are a perfect scenario that should go exempt. In that case, input $6,000 into STEP 3 and then it will be the same as you going exempt. It's a work-around.