IRS: Total Number of Allowances | TigerDroppings.com

Posted byMessage
tylercsbn9
LSU Fan
Tomball, TX
Member since Feb 2004
54645 posts
 Online 

IRS: Total Number of Allowances


So, I am trying to update my W-4 with my company so they won't take out as much money from my paycheck as there is no need to get a refund every year. I obviously rather have the money now.

I assume I have 2 allowances (or maybe 3), but I am not sure?

I am 29, single, no kids, and own my house on which I deduct interest and state taxes. I also live in Texas where there isn't a state income tax. No one claims me as a dependent.

Looking at the W4 form online I assume I can claim

A-yourself if no one else can claim you as a dependent

B-Since I am single and have one job

E- Head of household



This post was edited on 1/7 at 12:20 pm



Back to top
Share:
schexyoung
LSU Fan
Deaf Valley
Member since May 2008
3633 posts
 Online 

re: IRS: Total Number of Allowances


You have one allowance.





Back to top
gamatt53
Georgia Fan
Member since Nov 2010
739 posts

re: IRS: Total Number of Allowances


Single and 2 allowances. You will break even or get a small refund.





Back to top
igoringa
LSU Fan
Tejas
Member since Jun 2007
9533 posts

re: IRS: Total Number of Allowances


There is a myth about the W4 and allowances. Some folks need to claim many more 'allowances' then the worksheet shows to break even come April (ie if you have a lot of itemized deductions).

There are no significant 'rules' around how many exemptions you can take. The key is that if you are under witheld by a certain threshold, you will get penalized.







Back to top
tylercsbn9
LSU Fan
Tomball, TX
Member since Feb 2004
54645 posts
 Online 

re: IRS: Total Number of Allowances


So is it one or two?

The only deductions I have are my mortgage interest and taxes from my home.



This post was edited on 1/7 at 1:07 pm


Back to top
LSU6262
LSU Fan
Member since Jun 2008
2296 posts

re: IRS: Total Number of Allowances


I'm in same situation as you. except: I'm 26. In Louisiana.

I do 2 allowances every year. last year I got back $14 from federal






Back to top
tylercsbn9
LSU Fan
Tomball, TX
Member since Feb 2004
54645 posts
 Online 

re: IRS: Total Number of Allowances


I'll put two.

With my taxes going back up I'd rather have as much now as possible in addition to my 1.8% raise.






Back to top
LSU6262
LSU Fan
Member since Jun 2008
2296 posts

re: IRS: Total Number of Allowances


also, irs.gov has a calculator that will recommend your number of allowances. when I did it said 2





Back to top
Tenforty1728
LSU Fan
Baton Rouge
Member since Oct 2012
55 posts

re: IRS: Total Number of Allowances


You're only head of household if you have a dependent. A lot of people make the mistake that if they own a house they are head of household. This is not true.

The fewer exemptions that you claim on your W-4, the more tax will be withheld from your paycheck. It's not an exact science, especially when you factor in mortgage interest and taxes increasing your itemized deductions, but it should get you close.






Back to top
tylercsbn9
LSU Fan
Tomball, TX
Member since Feb 2004
54645 posts
 Online 

re: IRS: Total Number of Allowances


quote:

You're only head of household if you have a dependent. A lot of people make the mistake that if they own a house they are head of household. This is not true.



That's where I got confused.

2 it is instead of 3.

I should be getting back like 4 grand this year. I would really prefer to have that money now rather than later.



This post was edited on 1/7 at 1:51 pm


Back to top
lynxcat
Rutgers Fan
Member since Jan 2008
14326 posts

re: IRS: Total Number of Allowances


quote:

There is a myth about the W4 and allowances. Some folks need to claim many more 'allowances' then the worksheet shows to break even come April (ie if you have a lot of itemized deductions).

There are no significant 'rules' around how many exemptions you can take. The key is that if you are under witheld by a certain threshold, you will get penalized.


This. I think I claimed 5 or 6 allowances last year so that I did not receive thousands of dollars in refunds.

ETA: Just checked and I am claiming 2 this year.



This post was edited on 1/7 at 3:03 pm


Back to top
tigeraddict
LSU Fan
Baton Rouge
Member since Mar 2007
4701 posts

re: IRS: Total Number of Allowances


If you pay/situation do not change from 2012 to 2013 then wait until after you file your 2012 taxes to see what your total federal and state tax liability are.

if you paid $5000 in federal taxes (what you paid from your check - what you get from a return)then, have your company withhold $100/wk if you get paid weekly. This way you will over pay by about $200 and get a $200 refund

Same thing for state.






Back to top
Layabout
UNO Fan
Baton Rouge
Member since Jul 2011
6563 posts

re: IRS: Total Number of Allowances


Look at the dollars, not the number of exemptions. You need to make the withholding come out to at least 90% of your previous years tax liability. If you under-withhold, there is a penalty and you will have to make quarterly estimated tax payments.


This post was edited on 1/7 at 4:25 pm


Back to top


Back to top




//