Submitted by [deleted] t3_10q6kxk in personalfinance
84740296169 t1_j6o4gps wrote
It's a deduction, so it only reduces your taxable income; not the actual tax.
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?
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.
[deleted] OP t1_j6o5jdt wrote
[deleted]
84740296169 t1_j6o5veb wrote
Oh then the numbers check out. $4800 * .12 / 12 is about $48 less in tax a month.
[deleted] OP t1_j6o6gf7 wrote
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84740296169 t1_j6o6rnp wrote
You gotta factor in the standard deduction. Your rate is basically at 12%
strangebeansgirl t1_j6o6x50 wrote
Thank you so much!
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