Get the credit in your paycheck, not your refund

Withholding is an estimate of your year's tax. Credits reduce that tax. The W-4 has a place for credits, so that less is withheld and you're not lending the difference to the IRS until you file. The IRS instructions say you can include other credits you're eligible for in Step 3, and that doing so raises your paycheck and lowers your refund. (Form W-4, 2026)

1. 1Make your donation to CEN SGO. Keep the acknowledgment.
2. 2Give your employer a new W-4. In Step 3, add $1,700 (or your credit, if smaller) to any amount you already claim for children and dependents. Your payroll department can help.
3. 3Check the first paycheck after the change. Your federal withholding should fall a little each pay period.
4. 4File your 2027 return as normal and claim the credit. Since less was withheld, your refund will be about what it would have been without the donation.

Payroll divides the Step 3 amount by the number of pay periods in a full year. Here's what $1,700 does, if your W-4 is in place from January. (Publication 15-T)

Anna is paid every two weeks, 26 times a year. She owes about $8,000 in federal income tax and usually gets a $600 refund. She donates $1,700 to CEN SGO on January 4, 2027 and hands payroll a new W-4 the same week, adding $1,700 in Step 3. Her first paycheck of the year was already processed, so 25 paychecks carry the change. Each one has about $65 less withheld. That's about $1,635 in her pay during 2027. When she files, the credit covers the rest, and her refund is about $665 instead of $2,300. Illustrative figures.

Because payroll spreads the amount over a full year, a W-4 filed in July only moves about half the credit into your 2027 pay. The rest comes back when you file. You can enter a larger figure to catch up, but get it right or you'll owe in April. The IRS Tax Withholding Estimator works out the figure for a mid-year change.

If your income changes mid-year, revisit the W-4. The same goes if you marry, have a child or change jobs.

• Two jobs, or both spouses work. Claim the credit on one W-4 only, usually the higher-paying job.
• Higher incomes. The 2026 form's Step 3 is written for incomes up to $200,000, or $400,000 filing jointly. Above that, use the IRS estimator or ask your preparer.
• Self-employed. You don't have a W-4. You can lower your quarterly estimated payments instead. Remember the credit can't reduce self-employment tax.
• Retired. Pension withholding has its own form. Ask your plan administrator or preparer.

A W-4 stays in place until you change it. If you're not donating again in 2028, file a new one in January so you don't under-withhold. If you are, keep it. The 2027 form may look a little different from the 2026 one. Check the current version before you fill it in.

This is allowed, and it's what the W-4 is for. It's still a change to your withholding, and your preparer knows your whole picture.