Adjusting Federal W/H on Payroll Filings

[Hamacher]

I have a client that claims single, zero but still receives $9500 back each year. Can we make an adjustment on her withholdings (a reduction) each pay period. BTW - She owns the company and is the only employee.

Thanks in advance.

[golfeveryday87]

yes
Just change the W-4

[KJ Judd]

You want to increase the exemptions to decrease the withholding.

[Hamacher]

Another question

I should probably rephrase my question. Do we have to use what the table says or can we simply reduce the withholdings? I know QB allows me the ability to have EXTRA withholdings, I was wondering if you could REDUCE the amount as well.

Thanks in advance.

[thomtax]

You just list more dependents on the W4. The more dependents listed, the lower the withholding.

LT

[Hamacher]

One more time....

This is not the situation I have but maybe it will get my point across... Lets say a taxpayer takes a $90,000 wage but last year did not owe any tax on his/her Form 1040. So to avoid interest and/or penalties would not have to pay anything in for the current year. Is it possible to not withhold anything? I know when your self employed you have the ability to adjust estimated tax payments. I am just wondering if you can just withhold what you want (regardless of the tables).

Thanks in advance.

[BOB W]

Withholding.......

............... you can make withholding anything you want throughout the year, as long as you don't cause penalties and interest on your client for underpayment of Est Taxes..

Assuming this client is an S Corp and possibly the SCorp had a loss, maybe the Gross W-2 issued is too high with corresponding w/h. Although the client could of had big itemized deductions.

To directly answer you question, you can make w/h anything you want.

[Hamacher]

Thanks!

Thanks for the reply. I figured it was OK, but thought I would check.