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Lane
Lane, JD, CFP, MBA, CRPS
Category: Finance
Satisfied Customers: 12035
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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I am getting a huge bonus on my first paycheck of the year.

Customer Question

I am getting a huge bonus on my first paycheck of the year. I would like to change my dependents for that one paycheck so I can get a large portion back because I will be getting a second bonus at the end of the year and will use that to pay my taxes for April 2018. I don't know how to choose how many dependents to get a. Specific amount back.
JA: The Accountant will know how to help. Is there anything else important you think the Accountant should know?
Customer: I don't believe so
Submitted: 6 months ago.
Category: Finance
Expert:  Lane replied 6 months ago.

Hi, My name's Lane

...

Every allowance on the W-4 equates to one exemption on the return.

...

The personal exemption amount for 2017 is $4,050, the same as 2016

...

So, if you have income on which you want NO withholding, divide that 4050 into the amount.

...

An additional 15,000 you don't want taxed would be 15,000/4050 = 3.7 ... So adding three for that one pay period would exempt almost all of that from taxation. Four additional allowances would exempt all of that and a little of your other income.

Expert:  Lane replied 6 months ago.

Please let me know if you have ANY questions at all, before rating me.

I hope you’ll rate me (using those stars, or faces on your screen, by clicking submit) based on thoroughness and accuracy, rather than any good news / bad news content.

Otherwise I’ll receive no compensation for the work here at all, from JustAnswer.

Thank you!

Lane

I hold a law degree, with concentration in Tax Law, Estate law & Corporate law, an MBA, with specialization in finance a BBA, and CFP & CRPS designations, as well - I’ve been providing financial, Social Security/Medicare, estate, corporate, non-profit, and tax advice, to clients on three continents since 1986

Customer: replied 6 months ago.
My bonus is 40,000. It will be on my same regular check. I am salary and my pay is 4360 every two weeks.
I would like my bonus to be 37500 plus my regular check.
I didn't 100 % understand how to calculate it from that
Expert:  Lane replied 6 months ago.

So sorry, I didn't realize you had come back

40000 / 4050 = 9.876 ... So ADD 9 allowances (but only to the w-2 for one paycheck) and there will be no withholding on that extra 40,000.