Quote:
Originally Posted by hikernut
The W-4 worksheet is worthless, IMO. You really just need to figure your tax liability and then find the right number of exemptions to claim to get to that level. It can be difficult if your income is variable, though.
A few years ago I discovered that I'd already had enough income tax withheld by Oct/Nov timeframe for the whole year. I contacted our payroll dept. and they recommended I increase exemptions to the max, and then reset at the beginning of the next year. I don't recall the exact number, but it was much larger than 10.
|
That's why the IRS has an on-line calculator at
https://www.irs.gov/individuals/irs-...ing-calculator
It will tell you what to report on your W-4 to come very close to break even. And print the W-4 to give your employer.
People should use it at least twice a year. In Jan when you know what your pay, etc is for the year, and around Sep-Oct to see if you are on track. And of course anytime there is a major change in situation,( new job, new marriage, new child, big promotion, etc, etc).
It is especially helpful if you are a 2 earner MFJ, and incomes are very different.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
