Post # 1
I am embarrassed that I don’t know the answer- but:
What do you claim on a new W4 to have NO taxes withheld (so you will pay in during tax time)? We usually get a lot back after taxes and we need that money through-out the year.
We are married… filing jointly… no dependents….
I am not working right now… (DH just sealed the deal on a new job.)
Post # 3
http://www.irs.gov/pub/irs-pdf/p15.pdf – Start at Page 44 for Biweekly Paychecks
I’m no expert but I use this as a way to tell what will be taken out. Depending on how much you DH makes, you have claim at least 8 for no money to come out.
Post # 4
@Mrs.Mittens: Thank you mittens! I really need an accountant….
Post # 5
@cbee: That was going to be my next bit of advice! We need one too, so I understand!
Post # 6
I think 9 is the highest number of deductions you can take. Not sure though.
Post # 7
I’m pretty sure the only way to have 0 taxes taken out is to claim “exempt” in the box on the bottom of the W4. However, the only way you qualify to claim “exempt” is if you received a full refund of ALL federal taxes paid in the previous year and expect to receive a full refund again in the current year. This would mean for 2012 that you would combined need to have income of less than $19,500 for the year, and less than $300 of unearned income (meaning from interest income and dividends).
Post # 8
Are you absolutely certain you’ll have the amount of next year’s tax bill saved up in time? DH got some bad advice from his parents years ago, and was claiming something like 6 exemptions. For several years in a row, he ended up owing $3,000. The IRS contacted his employers, and made them change his exemptions to 0 and pay the maximum amounts. That still wasn’t covering it, so he had to work out a payment plan. We got married in December, so they kept what my refund would’ve been from last year, and he still owes $137!
I’d recommend changing your exemptions to whatever will cover your taxes as closely as possible so you won’t owe the IRS or get a refund.