I'm not a tax expert, but I've dealt with paying taxes for many (too many) years. I would put 1, especially if you are moving from one job to the next. Regarding withholding, allowances etc. Again, I don't know that I can explain everything perfectly, but what it comes down to is this. At the end of the year, you will have made a certain amount of money that the government will tax. On each pay check, your employer will keep (withhold) a certain amount of your check and send that to the government. At the end of the year (well, mid April) you'll file your taxes. This is basically settling up with the government. You'll owe a certain amount of money to the government. The amount of money that has been withheld from your check for the year will be reported to you on your w2 form. If the amount withheld is more than what you owe (after deductions and 100 other complexities I can't begin to explain or understand) you'll get a refund. However, if the amount withheld is less than what you owe, you'll have to pay the difference. The allowances you choose will determine how much is withheld. I'm still not sure I completely understand how that all works. But that is their purpose. hth More on reddit.com

I’m just trying to get the biggest refund possible after filing taxes… Tax refunds aren't free money. They're an overpayment of taxes caused by having too much money withheld from your paycheck. Do you like taking home less money? Do you like giving the government an interest free loan? The W-4 form instructions are pretty self explanatory. If filled out properly, it should result in a minimal refund or amount owed in April, which is ideal More on reddit.com

Is there anything I can actually do to fix the 2023 tax year other than paying the lump sum? Pretty much. I mean, you can set up a payment plan. Or reduce your income tax owed by making a 2023 IRA contribution, assuming you are eligible for a deduction (MAGI of <$73,000 or so if Single, limit doesn't apply if you don't have a retirement plan at work). Is the solution to make sure I fill it out properly for 2024? Yes, just follow the instructions, which are on the form, but really read them. All credits go on the terribly-named Step 3. Income that is not withheld is 4a (look at your 1099-INT total, if you get a 1099-DIV, subtract Qualified Dividends from Ordinary Dividends and add that too). Deductions above and beyond the standard go 4b. Extra withholding, say 15% of those Qualified Dividends, go on 4c. Except unlike 3 through 4b it's per paycheck not yearly, so divide yearly extra tax by paychecks left in the year. If you have two jobs, stop, let us know, as that requires a whole separate discussion. I/we can go way into the weeds here, but carefully reading the instructions is key. Another option is to take your taxes due ($3,000), divide by the number of paychecks left in the year, put that in 4c. If nothing else changes much, you won't owe or be due much. Also, W-4 is federal withholding only. Although many states call it something similar like DE-4. If you owe a lot of state, you'd want to read those instructions as well and/or let us know the state. It could also be related to a lack of reciprocity between your work location and your residence. More on reddit.com

Essentially, the government requires that your employer collect your income tax on your wages and send that to the government. In order to do that, your employer needs some way to estimate how much you'll pay in taxes. To do that, they need information from you about how much you expect to pay in taxes. So you tell your employer if you're married or single, and if you have certain allowances that would be subtracted from your taxable income. (like having kids) You can tell your employer to withhold extra money, if you have special circumstances or if you're working two jobs. Your employer then uses that information to estimate your income taxes, and withholds those funds from your paycheck. More on reddit.com