The number of withholding allowances that you elect on your W-4 form will affect the amount of taxes withheld from your paycheck and, ultimately, the amount of your tax refund. If you choose "0" allowances or even more withholding (e.g., "0" allowances + $50), you'll have more taxes withheld from your pay, which translates into a smaller paycheck and a larger tax refund. If you elect more withholding allowances (based on the number of adults and dependents in your household), you'll have fewer taxes deducted, larger take-home pay, and a smaller tax refund. Consider completing a new W-4 form each year and when your personal or financial situation changes.
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