I got a big tax refund. How do I change my withholding?

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Q. This year for the first time, I got a sizable tax refund. That’s great, I guess, but I would rather have that money all year long. How can I decide if I should change my withholding?
— Taxpayer

A. Nice to hear about the refund, but you’re right.

Who wants to give the federal government an interest-free loan?

Changing your withholding is relatively simple. You can ask your human resources department for a new state and federal W-4 form.

This is where you note how many dependents you will claim.

The more exemptions, the less tax that’s withheld.

You didn’t say if you’re single, married or if you have dependent children. These factors will help guide you.

But you may want an outside opinion on how to change your withholding, and you also want to consider whether your deductions will remain the same going forward.

You can try the IRS’ withholding calculator as a start, but consider meeting with a tax professional who can review your return, see what’s changed and help you project what the next year will bring.

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This story was originally published on April 12, 2023.

NJMoneyHelp.com presents certain general financial planning principles and advice, but should never be viewed as a substitute for obtaining advice from a personal professional advisor who understands your unique individual circumstances.