Have Tax Questions? Ask a Tax Expert for Answers ASAP
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The IRS has a calculator that you can use to determine if you need to change your W4. It is very simple to use but it does require information about specific income and possible deductions that you will need to enter to correctly calculate the number of exemptions to claim.
I am coming up with 14 and that's not resonable. I have tried different numbers but I can't figure out what I'm misunderstanding on the questionaire.
Did you enter the income and withholding to date?
How much income do you expect, what ahs been withheld already, how are you paid (weekly, monthly,...)
yes, i entered that
Tell me your info and I will check on the withhoding exemptions for you, 14 is high. I can only guess that you have itemized deductions that afford you a better tax situation than standard.
last yr income was 52829 for job 1, 1500 for job 2. Will be close to the same this year.
oops...here's more. pd 8286 fed taxes..interest pd was 12396...gifts 800...other taxes...7940. All will be nearly the same this year. 401K is about 550/mo. my last paycheck had deduction of 209 fed tax and gross of 1877. Anything else?
Not yet, one minute
Based on the information you previously entered, your anticipated income tax for 2011 is $3,006 If you do not change your current withholding arrangement, you will have $10,864 withheld for 2011, resulting in an overpayment of $7,858 when you file your return. If you want your withholding to more closely match your anticipated tax, adjust your withholding on new Forms W-4 as follows:
Assuming these recommended allowance(s) are in effect for the rest of 2011, your expected refund should be about $325. Following this recommendation will ensure that the amount withheld from your wages will cover all of your projected tax liability while minimizing your refund.
I would be more comfortable with 6 allowances myself on that first job.
No since in cutting it too close
I suspected you were able to use your Schedule A
yes, I did use schedule A. 6 seems so many. I only claimed 1 last year but I'd rather have the money during the yr than get a big refund. I sure don't want to end up paying in. I was hoping there would be a typical amount that each exemption was worth so I'd have a clear answer...quess not, huh?
Not really. It is an estimate remember. You would probably wish to go with 4 then only on the 1st job and remain ) 0 on the second. This would put upi closer to the $1000 you first requested. Come back tot he IRS calculator around July and recalculate. You will be able to see if you need to change for the remaining year.
Ok, Thank you...that feels more compfortable to me.