Question

What can I do to get a state tax refund instead of paying state taxes every year?

Answer

You can change your state withholdings by submitting a new state W-4 to your employer. Here’s what you need to do:

  1. Start with the amount you have to pay the state annually. Divide it by the number of paychecks you receive annually.
  2. Round the result up. You can round it to the dollar, five dollars, or ten dollars. This just depends on how large a state refund you would like.
  3. Put the result in as an additional amount to withdraw for your state withholding per paycheck. This will cover the amount you’ve been paying to your state at tax time. Depending on how late it is in the year when you make the adjustment, you might still have a balance due the first year. However, the money should balance out the next year.
  4. Make any other adjustments as necessary.

Other options include:

  • Reducing your W-4 allowances for the state
  • Paying estimated quarterly state taxes so you receive a refund instead of owing

Both of these are based on how much you think you’ll owe in state taxes next year.

Related Topics

Related Resources

IRS Letter 257C – We Corrected Your Name or Taxpayer Identification Number

The discrepancy between your name and your Taxpayer Identification Number has been corrected. Learn more from the tax experts at H&R Block.

IRS Extension – Form 4868

Do you need a filing extension from the IRS? Learn how to file IRS extension Form 4868 and get tax answers from H&R Block.

Top Four Reasons to File an Amended Return

Need help deciding if you need to file an amended return (IRS Form 1040X)? Get the facts from the tax experts at H&R Block.

Tax Filing Extension Deadline | H&R Block

Do you need more time to file taxes? Review these time-sensitive tax pro tips to prepare for the tax filing extension deadline. Read more from our pros on the H&R Block blog.