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Financial Planning / Tax Strategies
|Subject: Re: How to update W-4 to increase allowances?||Date: 12/22/2008 12:11 AM|
|Author: foo1bar||Number: 103117 of 120801|
Any ideas of how to fill-in the Form to get me up to allowances of 8-10?
So, I'll assume you can fill in lines 1-4 by yourself, since I don't know your name, address, etc.
To get ten entered in the form on line 5, you write a "1", closely followed by a "0".
Then you sign it, and hand that in to your payroll department, who will update their withholding.
seriously though -
So long as you're withholding enough taxes that you don't owe additional on April 15th, the IRS doesn't care.
And even if you do owe additional there are safe harbors - like if you with-held 110% of last years owed taxes (100% if under a certain AGI; $150K I think) - you can find info on these safe harbors by searching "withholding safe harbor"
If 10 allowances gets you to 110% of the taxes you paid in the previous year, fill out the form with 10 on line 5, and hand it in.
If you don't want to jump all the way to 10, and want to see your first couple paychecks with 8 or 9 instead, fill in 8 or 9 and give it to payroll, see what your paycheck is, annualize it, and submit a new one with 10 if you want to go to 10 (or accept getting a few dollars back in refund in March/April).
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