To DEcrease withholdings (the dollars shown on the Fed line of your paystub)
One must INcrease exemptions claimed on Form W-4
But the rest is correct. If you underwithhold/underpay you risk penalties come April.
However, if you try to claim so many exemptions as to get to zero federal withholdings, employers are required to second-guess you and make you document the exemptions you are claiming (not all will do this but they’re required to nonetheless). But if you go to very little federal withholding, just not zero, employers generally don’t give a shit and will just make the payroll adjustments accordingly.
Small technical correction:
To DEcrease withholdings (the dollars shown on the Fed line of your paystub)
One must INcrease exemptions claimed on Form W-4
But the rest is correct. If you underwithhold/underpay you risk penalties come April.
However, if you try to claim so many exemptions as to get to zero federal withholdings, employers are required to second-guess you and make you document the exemptions you are claiming (not all will do this but they’re required to nonetheless). But if you go to very little federal withholding, just not zero, employers generally don’t give a shit and will just make the payroll adjustments accordingly.