I recently updated "Additional Dependents Under 17" to 3 in MyPay, and I didn't have any federal withholding in the following month. I assume this is due to the child credits because the credits will be more than the federal tax I have to pay. Am I right?
No Federal Withholding After Updating MyPay
byu/paektuminer inMilitaryFinance
Posted by paektuminer
2 Comments
A properly calculated W-4, which accounts for dependents, may lower your tax withholding to $0 if your household income is low enough.
Whether that is “right” or not can’t be stated for sure without additional info…but yes, adding dependents will lower your withholding.
Yes, DFAS won’t withhold anything if you’re below the threshold for owing taxes. This is normal.
I have heard some people say they really like getting a refund so they put their exemptions at 0, but they’re just giving the federal government an interest-free loan. I would rather have my pay every month and get a more meager refund.