6 months of 2008 US mnthly salary pre-taxed and federal refund was close to 2K. In 2009 11 months of same salary was pre-taxed and fed refund came to 817. Is this possible and correct?

Answer 1

This could be correct if your income tax return was completed correctly because of the making work pay tax credit and the reduction in the withholding table that the employer started using in April of 2009 to make your pay check take home pay larger.

To change the amount for the 2010 tax year you will need to fill out a W-4 form and give to your employer advising the payroll department that you want federal income tax withheld from your gross pay.

The IRS has a useful tool available for this purpose called the IRS Withholding Calculator. Go to the IRS gov web site and choose Individual and then scroll down page and choose IRS Withholding Calculator.

You can use the search box at the IRS gov web site and type IRS Withholding Calculator

This easy to use calculator can help you figure your Federal income tax withholding so your employer can withhold the correct amount from your pay. This is particularly helpful if you've had too much or too little withheld in the past, your situation has changed, or you are starting a new job.

The W-4 form is also available by using the search box at the IRS gov web site.