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84740296169 t1_j6o4gps wrote

It's a deduction, so it only reduces your taxable income; not the actual tax.

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strangebeansgirl t1_j6o4vft wrote

So you are saying my paycheck will not change no matter what is written on 4b?

My taxable gross is the exact same for December 2022 and January 2023. Does that mean my updated W-4 has not been processed?

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84740296169 t1_j6o56dn wrote

No. I mean that your taxable income is reduced by $6000. The withholding would only reduce by the amount of taxes you no longer have to pay on that $6000. Depending on how much you are making it seems like they reduced your withholding by $50 which lines up if you are making less than $20k a year.

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[deleted] OP t1_j6o5jdt wrote

[deleted]

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84740296169 t1_j6o5veb wrote

Oh then the numbers check out. $4800 * .12 / 12 is about $48 less in tax a month.

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nothlit t1_j6o5c3c wrote

A deduction reduces your taxable income, which indirectly reduces your tax by whatever your marginal tax rate happens to be.

For example, in the 12% tax bracket, a $4800 deduction reduces your tax by 0.12 x 4800 = $576 over the course of the year, or $48 per paycheck if you are paid monthly.

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