Thanks in advance for any replies.
I have a question about my w-4 allowances and paycheck deductions. Last year had ten allowances and even though I had a lot taken out for my year-end bonus, my itemized deductions (mortgage interest, charitable, etc) allowed me to get a 2500 dollar refund. This year my pay will be approximately the same (same monthly, same bonus). I decided to increase my allowances to 16 to get more money now instead of from a refund. The increase in allowances decreased my federal withdrawl about 40%. Since I didn't do this until August, I still expect about 1500 in a refund. My question is: Is there any issue to raising my allowances to 20, which brings my federal withdrawal for my regular paychecks the rest of this year to close to 0? Will the IRS care? Will it flag anything if nothing is being taken out for federal? (Technically I haven't received my bonus yet, but there's a
99.9% chance that I will in December) Hopefully I explained this well enough to understand..Thanks again.