W-4 and Exemptions

[JanetRose]

Do you put down what they recommend or less or more, depending if you want to get a refund or not?

 

[foolishmortal]

Do you put down what they recommend or less or more, depending if you want to get a refund or not?

depends. I for one tru to get as close to even as I can (why give govt free money to use upfront)? if need a couple extra dollars wil lchange deductions and gain some money a check or 2 and then adjust again a little more dramatic the opposite to offset that previous change

 

[Eeyore'sthebest]

depends. I for one tru to get as close to even as I can (why give govt free money to use upfront)? if need a couple extra dollars wil lchange deductions and gain some money a check or 2 and then adjust again a little more dramatic the opposite to offset that previous change

This is what we try to do and we still (hopefully) end up with a little at the end. I then bank it for DD's school tuition.

 

[DVC-Don]

I try to owe them nothing and no refund. It's my money!

 

[dejr_8]

I try to owe them nothing and no refund. It's my money!

You beat me to it. I think you are a fool if every year you get a huge refund. All you are doing is giving the Government an interest free loan.

 

[luvdamouse91]

If you want to have the most taken out - claim 0. Married and 0 has an option of withholding at a "Single rate". This basically gets you to back to Single and 0.

If you want more than Single and 0 - You can also claim 0 and have extra $$ withheld. There is a line for it on the W-4.

It's your money and how you "save" it is up to you.

HTH

 

[DMickey28]

I will have to check with DH but I think we claim Married 3 right now and we could claim at least 4 with the new baby. I'll have to check with him. This past year we got a little back but with the baby it will be more. I wanted him to up it but he wasn't comfortable due to commissions and they way those are taxed. Since this year is low on commissions it's probably worth changing!!!

 

[momof1princess]

honestly, all that stuff confuses the devil out of me. i just had to redo the exemptions forms for DH's employer (WHY they can't just go by the old ones, which have been on file for YEARS, i have NO idea *rolls eyes*), and i really don't think i did them right, and his HR department was no help.

 

[NikitaZee]

I'm in the minority (on the DIS anyway). We claim 0, give the gov't an interest-free loan, and get a big refund. That's the way we do it - and it works for us. Flame away, flame away!!!

 

[Art 1]

Married, 2, plus $100 per week. Still end up owing.

 

[Acklander]

You beat me to it. I think you are a fool if every year you get a huge refund. All you are doing is giving the Government an interest free loan.

Fool might be a strong word considering what the banks are paying in interest these days.

Dh and I both claim single/zero to account for the fact that we both work. We usually end up within 500 bucks on either side (owing or refunding) which I'm comfortable with

 

[dejr_8]

Fool might be a strong word considering what the banks are paying in interest these days.

Dh and I both claim single/zero to account for the fact that we both work. We usually end up within 500 bucks on either side (owing or refunding) which I'm comfortable with

So you would rather earn 0% interest over 1% interest? And that alone is foolish thinking. Do you (the general you not the specific you) have any balances on high interest credit cards? You could reduce those balances and "earn" 12% (or greater) interest on your money.

Now the +/- $500 range of refund/owing is about as close as you can be considering the penalties involved with significant underpayment of taxes. But if you are in the several thousand dollar refund every year crowd you are being just plain foolish with your money. Sorry, them there the facts.