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Author: djingle Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121585  
Subject: Exemptions Date: 9/2/2000 10:13 AM
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I realize that this is probably a basic questions, but I couldn't find anything that directly addressed it. I bought a house at the beginning of 2000, am married and we are expecting our first baby in March 2001. Since I have little concept of how much refund I will get, I have just left my tax exemption at 1. What should I up this to, or where can I find a calculation sheet to help me make an educated judgement on how much I should have withheld vs. getting paid out in each pay check. I am asking this both in light of our new home and considering alternative income scenarios for my wife (continue working full-time, part-time or not at all). Thank you for your help.
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Author: donk23 Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 39478 of 121585
Subject: Re: Exemptions Date: 9/2/2000 8:42 PM
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I realize that this is probably a basic questions, but I couldn't find anything that directly addressed it. I bought a house at the beginning of 2000, am married and we are expecting our first baby in March 2001. Since I have little concept of how much refund I will get, I have just left my tax exemption at 1. What should I up this to, or where can I find a calculation sheet to help me make an educated judgement on how much I should have withheld vs. getting paid out in each pay check.

As a first step, use the Deductions and Adjustments Worksheet that is attached to Form W-4. You can download/view that here: http://ftp.fedworld.gov/pub/irs-pdf/fw4_00.pdf.

The more exact way to do it is to estimate what your taxes will be. Then, get Publication 15 Circular E (available here: http://ftp.fedworld.gov/pub/irs-pdf/p15.pdf) and compute exactly what your employer will withhold at each exemption level. This way you can precisely adjust the withholding exemptions to achieve the withholding that you want.


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Author: TMFTaxes Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 39570 of 121585
Subject: Re: Exemptions Date: 9/5/2000 6:42 PM
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<<Since I have little concept of how much refund I will get, I have just left my tax exemption at 1. What should I up this to, or where can I find a calculation sheet to help me make an educated judgement on how much I should have withheld vs. getting paid out in each pay check.>>

Check the EDCO website at http://www.edcosoft.com

Ed has a good website to help you with your computations.

TMF Taxes
Roy



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