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Financial Planning / Tax Strategies
|Subject: How to update W-4 to increase allowances?||Date: 12/21/2008 5:23 PM|
|Author: willycapt||Number: 103116 of 121106|
Hello all. For tax year 2007, I received a $6600 refund; claiming 2 allowances for myself and wife. Did not make any changes this year. Therefore, for tax year 2008, I'm expecting about the same -- and some online calculators confirm this when pumping in my 2008 information. For 2009, I want to change my W-4 to NOT get into this same refund scenario again -- I want to pay only what the IRS basically requires. :)
Anyway, the Kiplinger website has a calculator that tells me that based on 2007 tax year, I should have updated my allowances to be 10, not 2! I'm assuming the same would be for this year. In any case, I'm looking at the IRS draft Form W-4. For married filing jointly (no children), I have 2 allowances for myself and wife on Line H. How do I make this more -- 6, 8, 10?
We plan to itemize our deductions for 2009 as we will be buying a house soon (closing in Jan/Feb). Even with mortgage interest, property tax, etc., I can only get my allowanced up to 5. That means I will still expect a significant refund in 2010.
Any ideas of how to fill-in the Form to get me up to allowances of 8-10?
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