Comments on: How Many Deductions to Take on Your W-4 http://beancounterblog.com/2007/03/06/how-many-deductions-to-take-on-your-w-4/ Sat, 24 Mar 2012 18:32:57 +0000 hourly 1 http://wordpress.org/?v= By: roby http://beancounterblog.com/2007/03/06/how-many-deductions-to-take-on-your-w-4/comment-page-1/#comment-80207 roby Fri, 25 Mar 2011 17:10:56 +0000 http://beancounterblog.com/2007/03/06/how-many-deductions-to-take-on-your-w-4/#comment-80207 This advice has been around for years--and is all over the net. In point of fact, though, if you fill out the W-4s honestly, you'll discover that you likely cannot claim any more exemptions than you already do! Plus, given the straits of the government, I'm happy to lend them $1,000-2,000 for the year. At current interest rates, I'm probably losing $10. But our combined letting Uncle Sam have helps cushion the deficit. Of course, having written that, let's keep in mind that the real way to solve the debt and deficit "crises" is through real, honest to goodness progressive taxation. This advice has been around for years–and is all over the net. In point of fact, though, if you fill out the W-4s honestly, you’ll discover that you likely cannot claim any more exemptions than you already do!

Plus, given the straits of the government, I’m happy to lend them $1,000-2,000 for the year. At current interest rates, I’m probably losing $10. But our combined letting Uncle Sam have helps cushion the deficit.

Of course, having written that, let’s keep in mind that the real way to solve the debt and deficit “crises” is through real, honest to goodness progressive taxation.

]]> By: Time To Review Your W-4 Exemptions | BeancounterBlog.com http://beancounterblog.com/2007/03/06/how-many-deductions-to-take-on-your-w-4/comment-page-1/#comment-80130 Time To Review Your W-4 Exemptions | BeancounterBlog.com Wed, 05 May 2010 07:15:28 +0000 http://beancounterblog.com/2007/03/06/how-many-deductions-to-take-on-your-w-4/#comment-80130 [...] your exemptions so that you can improve your monthly cash flow. As I mentioned in an earlier post (How Many Deductions to Take on Your W-4) there are a few online calculators to help you determine what the appropriate number of exemptions [...] [...] your exemptions so that you can improve your monthly cash flow. As I mentioned in an earlier post (How Many Deductions to Take on Your W-4) there are a few online calculators to help you determine what the appropriate number of exemptions [...]

]]> By: Nick http://beancounterblog.com/2007/03/06/how-many-deductions-to-take-on-your-w-4/comment-page-1/#comment-80064 Nick Tue, 09 Feb 2010 20:12:56 +0000 http://beancounterblog.com/2007/03/06/how-many-deductions-to-take-on-your-w-4/#comment-80064 Correction, the form W4 allowance worksheet lists 10 for single and 15 for married filing jointly. So if you are single you may have 10 allowances and if you are married filing jointly you may have 15. Correction, the form W4 allowance worksheet lists 10 for single and 15 for married filing jointly. So if you are single you may have 10 allowances and if you are married filing jointly you may have 15.

]]> By: Nick Perkins http://beancounterblog.com/2007/03/06/how-many-deductions-to-take-on-your-w-4/comment-page-1/#comment-80063 Nick Perkins Tue, 09 Feb 2010 19:59:06 +0000 http://beancounterblog.com/2007/03/06/how-many-deductions-to-take-on-your-w-4/#comment-80063 Every source I have found indicates the maximum number of "allowances" you can claim on your W4 is 10. This works out to be 13% of my income and the $ amount is very near to my tax liability for this year. Previously, I had 6 allowances and that was about 17% of my taxable income. It was ~22% when I used to claim 0. So those three data points support a cap of 22% and approximately -1% for each allowance. I too wanted to keep all of my money, invest it and pay at the end of the year but the IRS wants to reap interest from our money--and with our deficit as high as it is, they need all the interest they can get. :) So claim up to 10 and it will work for the majority of people. My income is higher than the average married couple and 10 is perfect for me. Every source I have found indicates the maximum number of “allowances” you can claim on your W4 is 10. This works out to be 13% of my income and the $ amount is very near to my tax liability for this year. Previously, I had 6 allowances and that was about 17% of my taxable income. It was ~22% when I used to claim 0. So those three data points support a cap of 22% and approximately -1% for each allowance.

I too wanted to keep all of my money, invest it and pay at the end of the year but the IRS wants to reap interest from our money–and with our deficit as high as it is, they need all the interest they can get. :) So claim up to 10 and it will work for the majority of people. My income is higher than the average married couple and 10 is perfect for me.

]]> By: shelly http://beancounterblog.com/2007/03/06/how-many-deductions-to-take-on-your-w-4/comment-page-1/#comment-80047 shelly Sun, 06 Dec 2009 01:36:14 +0000 http://beancounterblog.com/2007/03/06/how-many-deductions-to-take-on-your-w-4/#comment-80047 I am single, divorced and head of household. I am a fulltime student and make less than 30K. I don't what to claim on my W-4 and have 2 kids less than 18 1 that lives with me half of the year...please advise.... I am single, divorced and head of household. I am a fulltime student and make less than 30K. I don’t what to claim on my W-4 and have 2 kids less than 18 1 that lives with me half of the year…please advise….

]]> By: How Much Time Should You Spend On Your Finances? | BeancounterBlog.com http://beancounterblog.com/2007/03/06/how-many-deductions-to-take-on-your-w-4/comment-page-1/#comment-79892 How Much Time Should You Spend On Your Finances? | BeancounterBlog.com Mon, 07 Sep 2009 03:10:00 +0000 http://beancounterblog.com/2007/03/06/how-many-deductions-to-take-on-your-w-4/#comment-79892 [...] Review your tax withholding amounts and re-examine whether or not you should change them. [...] [...] Review your tax withholding amounts and re-examine whether or not you should change them. [...]

]]> By: sadie http://beancounterblog.com/2007/03/06/how-many-deductions-to-take-on-your-w-4/comment-page-1/#comment-79565 sadie Tue, 17 Feb 2009 13:09:07 +0000 http://beancounterblog.com/2007/03/06/how-many-deductions-to-take-on-your-w-4/#comment-79565 Great info. We are getting thousands back this year...mistake. So we'll be changing our deductions this week. Thanks for the links. Great info. We are getting thousands back this year…mistake. So we’ll be changing our deductions this week. Thanks for the links.

]]> By: sadie http://beancounterblog.com/2007/03/06/how-many-deductions-to-take-on-your-w-4/comment-page-1/#comment-79566 sadie Tue, 17 Feb 2009 13:08:31 +0000 http://beancounterblog.com/2007/03/06/how-many-deductions-to-take-on-your-w-4/#comment-79566 Great info. We are getting thousands back this year...mistake. So we'll be changing our deductions this week. Thanks for the links. Great info. We are getting thousands back this year…mistake. So we’ll be changing our deductions this week. Thanks for the links.

]]> By: how many to claim on my w4 http://beancounterblog.com/2007/03/06/how-many-deductions-to-take-on-your-w-4/comment-page-1/#comment-70473 how many to claim on my w4 Thu, 08 May 2008 14:50:38 +0000 http://beancounterblog.com/2007/03/06/how-many-deductions-to-take-on-your-w-4/#comment-70473 [...] of exemptions a person can claim? ... see my post on how many W-4 deductions to take for more ?? ...http://beancounterblog.com/2007/03/06/how-many-deductions-to-take-on-your-w-4/how many exemptions can my husband and I claim on my W4 being married ...... likely you can have one [...] [...] of exemptions a person can claim? … see my post on how many W-4 deductions to take for more ?? …http://beancounterblog.com/2007/03/06/how-many-deductions-to-take-on-your-w-4/how many exemptions can my husband and I claim on my W4 being married …… likely you can have one [...]

]]> By: Beancounter Blog | Breaking News: Filing Your Taxes Online is Easy http://beancounterblog.com/2007/03/06/how-many-deductions-to-take-on-your-w-4/comment-page-1/#comment-68546 Beancounter Blog | Breaking News: Filing Your Taxes Online is Easy Wed, 09 Apr 2008 21:50:45 +0000 http://beancounterblog.com/2007/03/06/how-many-deductions-to-take-on-your-w-4/#comment-68546 [...] loan with their refunds instead of allowing that money to work for them! (see my post on how many W-4 deductions to take for more [...] [...] loan with their refunds instead of allowing that money to work for them! (see my post on how many W-4 deductions to take for more [...]

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