Question

Suppose you filed your taxes and received a small refund from the IRS. What would have been the impact on the refund amount if you had increased the W-4 allowances for that tax year?

The refund would be smaller or you may owe taxes
The refund would be larger
The refund would not change

Answer 1

the refund would be largerw-4 is the form that you signed so your employer could withdraw a portion of your payment to be allocated to federal income tax. The fewer W-4 allowances you take, the more is withheld from your paycheck for tax purposes because the amount of tax payment that you have to pay is also increasing