You are clear, and I understand your statement. What we are missing each other on the main theme. I describe altering the standard deduction above, but the most likely scenario is they would be giving you a reduction in your withholdings as an 'early' refundable credit anyway. So getting it this year (spread across six months’ paychecks) would simply remove it from a future year...it isn't owing more taxes when you do that year, it is just getting that credit now...(and still getting this year’s) You are envisioning a loan, to be paid back. I’m describing an advance on a future discount, so to speak. A discount you get every year, so this year you get it twice, next year none. Not a loan, just early.
On the exemptions: The IRS dropped them last year, and you don't get to claim the arbitrary numbers you used to. There is no way to file exempt now when you are not exempt. There is no way to lower your taxes either....you used to enter extra exemptions, but that is gone. The only options is to pre-calculate your estimated deductions v. the standard deduction (pg. 3) and/or reduce the amount of withholdings directly related to your child tax credit (see step 3 on the form, it's in dollars now) IF you will make low enough to claim it. For a reference, here is the current W4
You are clear, and I understand your statement. What we are missing each other on the main theme. I describe altering the standard deduction above, but the most likely scenario is they would be giving you a reduction in your withholdings as an 'early' refundable credit anyway. So getting it this year (spread across six months’ paychecks) would simply remove it from a future year...it isn't owing more taxes when you do that year, it is just getting that credit now...(and still getting this year’s) You are envisioning a loan, to be paid back. I’m describing an advance on a future discount, so to speak. A discount you get every year, so this year you get it twice, next year none. Not a loan, just early.
On the exemptions: The IRS dropped them last year, and you don't get to claim the arbitrary numbers you used to. There is no way to file exempt now when you are not exempt. There is no way to lower your taxes either....you used to enter extra exemptions, but that is gone. The only options is to pre-calculate your estimated deductions v. the standard deduction (pg. 3) and/or reduce the amount of withholdings directly related to your child tax credit (see step 3 on the form, it's in dollars now) IF you will make low enough to claim it. For a reference, here is the current W4