MyPay and Tax Withholding

[riverq1]

I've just completed and sent in my tax returns for this year and got an estimated refund. As much as I like refunds at the end of the year, I'd like to stop giving interest-free loans to the government. I'm using the IRS Tax Withholding Estimator to reduce my future refunds for next year but have some questions about the information I need to enter. Another question is about "Federal Withholding" tab on myPay to make those changes.

IRS Estimator: The calculator asks me to enter "federal taxes paid per pay period". I get paid twice a month and my LES lists federal taxes paid for each month. Is this amount paid in one paycheck or two?

myPay: On the "Federal Withholding" tab, I'm looking for the equivalent spot for Step 3 on form W-4. I see "claim dependents" but it only gives me the option to fill two entry fields with 0-99 for dependents and not dollar amounts. The calculator tells me to put an exact dollar amount in this step, where the total is, and to keep every other field blank. I have no dependents and the amount is under $500 anyway. What do I do here?

 

[carson]

@riverq1 Set it to one and see if that works for you. That’s what I did when I was single and it got me close to a $0 tax return.

 

[tsundoku]

@riverq1 I find it easiest to consider military pay as "once per month" when using the IRS estimator. Just use the FED TAXES - WAGE PERIOD - WAGE YTD blocks part way down your LES for your once-monthly taxable wages & taxable YTD wage. Ignore the fact that you get mid-month pay - everything else on your monthly LES is monthly, so it makes it much easier to do annual tax calculations like this.

I'm surprised the calculator told you to put a dollar amount in step 3 where dependents and other credits would normally be accounted for. If it's a dollar amount under $500, it sounds like something you'd put in an "Extra Withholding" field. You can try that, or do what @carson suggested and enter a "1" exemption to reduce your monthly withholding (make sure you check the next LES where it takes effect and recalculate your year-end withholding to avoid underwithholding penalty fees)