exemption on W-4 form. What can I enter?
I currently claim 3 on my W4 form and at the end of the year I get a huge refund because I pay som much in mortgage interest as well as interest on my equity loan. I’d rather have the money in my paycheck upfront than get a big refund at the end of the year. Can I change it to 5 or 6 to get more money in my paycheck? I know I would get a smaller refund or have to pay at the end of the year but I want to make sure that it’s legal to do so.
Also, is there anyway to figure out how much more money I would get for each exemption?
I want to claim 7 allowances, my payroll manager said that was an awful lot. She would not offer any “adivse” or help to determine the number. So am I crazy? Perhaps someone out here can help me out…
I am filing jointly.
I make $ 65000 with $ 7500 annual bonus
My wife makes $ 65000 with no regular bonus
No significant dividends, interest, etc.
$ 19000 Total Mortgage Interest for the year
$ 4600 Property Tax
$ 600 Ad Volerum Tax (My State’s “Birthday” Tax)
$ 6500 State Tax
$ 600 Charity
$ 600 Car Loan Interest (does this even qualify?)
$ 1000 Business Mileage (this was reimbursed, do I still use it?)
$ 1200 Health Insurance (this may be pre-taxed?)
$ 1950 My 401K contribution (this may be pre-taxed?)
$ 3250 My Wife’s 401K contribution (again might be pre-taxed?)
I am guessing whatever the magic number is that I would do that only one W4, and would claim 0 on the other form…
In response to the third reply:
I was under the impression that deductions were most definitely revelant to Allowances you would claim. Is this not true? Isn’t the point to claim enough allowances so that you are very close to what you actually owe at the end of the year after deductions and credits.
Also, I was about 99% sure the Car Loan, Mileage, 401K, and Health Insurance did not qualify. I just wanted to check.