W-4 Resistance

Adjusting Withholding for Salaried Employees

If you have gotten a federal income tax refund in the past or anticipate one next time you file, you cannot resist unless you make adjustments to your withholding or estimated taxes.

Salaried employees can make a decision to increase the number of allowances on their W-4 form at any time in order to owe federal income taxes on April 15, and then you can choose how much you want to refuse. You do not need to explain to your employer your increase in W-4 deductions. Take the form home and fill it out and return only the first page, not the worksheet on page 3, to your employer. For more information on allowances, IRS regulation, risks and consequences, see Practical #1 or a short flyer or talk to a WTR counselor. You can restore the number of W-4 deductions to your original number at any time. We recommend that you not claim “exempt” on the W-4 unless you qualify per the instructions on the form.

If you are self-employed, and therefore don’t use a W-4 form, you must adjust the amount of estimated taxes you pay quarterly in order to resist when you file.