Want a Bigger Paycheck? Adjust Your Tax Withholdings — But Only if These 3 Things Are True
Written by
Karen Doyle
Edited by
Zuri Anderson
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Everybody wants a bigger paycheck, but if you can’t change jobs or ask for a raise, you may think you’re stuck with the same direct deposit amount every pay period.
There is one other way to get more money in your pocket on payday, but you’ll need to tread carefully. Here’s what you need to know.
Getting More Money on Payday When Your Salary Stays the Same
The only way to get more money in your pocket on payday without an increase in your salary is to change the amount of money that comes out of your check before it gets to you. Your employer withholds money for several things, which combine to make up the difference between your gross pay and your net pay. These things include income tax withholding, OASDI tax (Social Security and Medicare), your cost for health insurance, retirement plan contributions, and more.
By reducing the amount your employer withholds, you will increase the amount you get in your paycheck. Some of the amounts that are withheld are mandated, like OASDI tax. Others are optional, but still a good idea, like health insurance premiums and retirement plan contributions.
One area where it may be safe to change the amount your employer withholds is your federal and state income tax amounts – but only if you meet certain conditions.
You Consistently Get a Large Income Tax Refund
The average federal income tax refund received in 2024 (based on 2023 income) was $3,138, according to the IRS. If you get paid twice a month, that average refund amount would have equaled an extra $130 in each paycheck. If you received this refund, you effectively gave the federal government an interest-free loan until you got your refund.
You Will Have More Deductions This Year Than Last
If you buy a home, have a baby or get married this year, you will probably have more deductions than you had last year, which means you’ll owe less total tax. You can safely adjust your withholding so that you’ll get more money in each check. Keep in mind that if you report your change in marital status to your employer, they may adjust your filing status to married, which should reduce your withholding.
You Will Have Less Income This Year Than Last
If you have changed jobs or given up a second job, and your income will be lower in 2025 than it was in 2024, you may want to adjust your withholding.
How To Adjust Your Tax Withholding
It’s a good idea to check your withholding each year, preferably early in the year. Once you’ve done your income tax return and know the amount of your refund, you can determine how much less you want your employer to withhold. The IRS website has a tax withholding estimator that can help you estimate the correct amount of withholding.
Once you’ve determined how you want to change your withholding, complete a Form W-4, Employee’s Withholding Allowance Certificate, and give it to your employer. Be sure to check your next few pay stubs to make sure the adjustment was made.
Frequently-Asked Questions
How Can I Adjust My Tax Withholding?
To change the amount of tax your employer withholds, complete a W-4 form and give it to your employer.
Can I Change My Federal Withholding Online?
No. You need to complete a W-4 form and give it to your employer in order to make changes to your federal withholding amount.
What Should I Put on My W-4 To lower My Withholding?
The best way to determine the correct withholding is by using the IRS tax withholding estimator. You can also request extra withholding on your W-4 by putting an amount on line 4(c) showing the extra withholding you want for each pay period.
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