Many tax professionals and advisors recommend adjusting your W-4 allowances so that you can maximize your tax refund. It's nice for a lot of people to receive their refunds at the end of the year and benefit from the lump sum of money they receive at once. It make sit easier for those who have a lot of allowances to better estimate and adjust them in a way that will benefit them the most, long-term.
1. I believe the answer is: decrease/decrease
401k is taken from a part of your total income. So, increasing the amount of 401k deduction would reduce the amount of income that you can brought home. But, since 401k is not eligible as tax payment, increasing it would be resulted in the decrease of your tax payment.
2. I believe the answer is: increase/not change
w-4 allowance would provide us with tax deductables that can reduce our federal tax payments depending on our marital status. It would increase the net pay that you can bring home, but since it part of obligation to begin with, there would be no change in your total tax burden
3. I believe the answer is: The refund would be larger
Decreased w-4 allowance in this context would mean that you pay more taxes than your are obligated to pay (usually happen when you forgot to include your deduction) , because of this, you have the right for a larger refund to compensate for the over payment.
4. I believe the answer is: net pay
Net pay refers to The amount of payment that you still hold after all deductions are being made. Net pay represent your overall disposable income, meaning the maximum amount of income that you could use for your consumption.
5. I believe the answer is: You minimize your tax refund
Tax refund could only be gotten after you following the procedures that could take up a lot of your time. Rather than getting the financial value from tax refund, you should get it from not over paying the tax payment to begin with. With this you obtain the financial value without following time consuming procedures.
I think it may be
" THE TAX PAYMENT WILL EXACTLY MATCH ONE'S TAX LIABILITY "
Over payment and under payment of tax liability usually occur to people as a result of the number of withholding which they claim. Experts suggest adjusting the number of one' s withholding in order t avoid over or underpayment of tax.
The W4 form is used to claim allowances which one is entitled to. The number of allowance which one claims depends on one's status. Most people under pay or over pay their tax payment as a result of the number of claims that they make. Experts suggest that individuals should adjust their W4 allowance in such a way that over payment and under payment of tax will be avoided.