Adjusting Withholding for Salaried Employees
If you have gotten a federal income tax refund in the past or anticipate one next time you file, you cannot resist unless you make adjustments to your withholding or estimated taxes.
Salaried employees can make a decision to increase the number of deductions on their W-4 form at any time in order to owe federal income taxes on April 15, and then you can choose how much you want to refuse. You do not need to explain to your employer your increase in W-4 deductions. Take the form home and fill it out and return only the first page, not the worksheet on page 3, to your employer. For more information on deductions, IRS regulation, risks and consequences, see NWTRCC Practical #1 or or a short flyer or talk to a WTR counselor. You can restore the number of W-4 deductions to your original number at any time. We recommend that you not claim “exempt” on the W-4 unless you qualify per the instructions on the form.
If you are self-employed, and therefore don’t use a W-4 form, you must adjust the amount of estimated taxes you pay quarterly in order to resist when you file.
If taxes are withheld from retirement accounts: A major consideration as you plan for retirement is how much to draw from your retirement accounts. These are traditional and Roth IRAs, 401k, 403b, 457, etc. This money is taxable for the most part unless it is withdrawn from a Roth account. If you withdraw this money as a lump sum once a year, the fund holder is required with withhold 20% and send it to the IRS for taxes. No withholding is required for monthly payments. When you fill out the paperwork for starting the monthly withdrawal you will be given the option for how much to withhold for taxes. The simplest option for a war tax resister is to indicate that no federal taxes be withheld. If the fund paperwork does not offer an option for eliminating or changing your federal income tax withholding, you can fill out and submit the W-4P. When filling out the W-4P, simply check the box for “No Withholding.”