Taxpayer W-4 2020 Workaround Tip:
Avoid guessing the right Number of Allowances on your W-4, instead enter a Tax Withholding dollar amount on your W-4
As stated earlier, Allowances are gone starting in 2020. Instead, you will be asked to enter a Tax Withholding Dollar amount instead.
Let's say the result of your estimated 2020 Tax Return shows that you can expect a Tax Refund in 2020 for your 2020 Tax Return in the amount of $1,200. In terms of your paycheck this would indicate that you are withholding $1,200 too much in Taxes for Tax Year 2020. Let's say there are 6 months left in 2020. If you reduced your monthly tax withholding by $200 for the remaining 6 months your Taxes should be balanced - no refund, no taxes owed. If your current monthly pay check showed $300 in tax withholding, you could change your Allowances to, let's say, 12 - this would most likely guarantee zero tax withholding - at the same time you would enter a tax withholding dollar amount on your W-4 of $100 (per monthly paycheck) or $50 per bi-weekly paycheck. In effect, you would reduce your monthly withholding by $200.
Disclaimer: This Workaround Tip was shared by other Taxpayers. Please contact us
if you have more questions about this approach.