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Author: jsv Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121061  
Subject: Federal Withholding Date: 3/2/1999 8:33 PM
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I finished my 1998 taxes recently and discovered I had a very large refund coming. I would like to change my withholding so that this refund is whittled down to a minimum. I have seen charts which show how many additional exemptions to show on the w-4 form for each additional increment of money you do not want withheld. Does anyone have a copy of this chart, or otherwise have insight into this. Any help will be appreciated. Thanks.
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Author: cactusgal One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 11343 of 121061
Subject: Re: Federal Withholding Date: 3/2/1999 8:39 PM
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You will need to fill out a new form W-4 for your employer. They should give you the instructions (which has that chart) with it. If it doesn't have the instructions, you can find them on the IRS web site.

Good luck. Receiving a big refund means you made an interest free loan to the government for the year. Not a Foolish thing to do.

Cactus

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Author: cactusgal One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 11344 of 121061
Subject: Re: Federal Withholding Date: 3/2/1999 8:44 PM
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See post #11274 on this board for the link to the IRS.

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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: 11368 of 121061
Subject: Re: Federal Withholding Date: 3/3/1999 1:36 AM
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[[I finished my 1998 taxes recently and discovered I had a very large refund
coming. I would like to change my withholding so that this refund is whittled
down to a minimum.]]

Very, VERY Foolish of you!!! Good job!!

[[ I have seen charts which show how many additional
exemptions to show on the w-4 form for each additional increment of money
you do not want withheld. Does anyone have a copy of this chart, or otherwise
have insight into this. Any help will be appreciated. Thanks.]]

You can go to the IRS web site and get the chart and all of the computational forms by downloading IRS Form W-4. It is a 4 page form, that will lead you through the computations to assist you with determining your new withholding status.

Visit the IRS web site at: http://www.irs.ustreas.gov

TMF Taxes
Roy

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Author: rlbusby Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 11381 of 121061
Subject: Re: Federal Withholding Date: 3/3/1999 3:30 PM
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Original comment and response:
" I have seen charts which show how many additional
exemptions to show on the w-4 form for each additional increment of money you do not want withheld. Does anyone have a copy of this chart, or otherwise
have insight into this. Any help will be appreciated. Thanks.]]

You can go to the IRS web site and get the chart and all of the computational forms by downloading IRS Form W-4. It is a 4 page form, that will lead you through the computations to assist you with determining
your new withholding status."

I've tried to figure my way through the IRS W-4 forms
but I found them confusing. Here is my modified
approach:
(1) Estimate the amount I want withheld in 1999
by adjusting my 1998 tax forms (use a spread-
sheet or tax filing program).
(2) File a w-4 claiming married and 10 dependents,
(Note I don't have 10 dependents).
I can do this via the computer, this will lead
to underwithholding of taxes I want withheld.
(3) Ask for "additional withholding" of the
difference between 1 and 2. This way I can
precisely get my withholding where I want it.
I avoid the tedious and inaccurate calculations on
form w-4 and I gain precision for the amount I want
to withhold. I can fine tune this amount later.

Rod


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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: 11404 of 121061
Subject: Re: Federal Withholding Date: 3/4/1999 12:45 AM
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[[I've tried to figure my way through the IRS W-4 forms
but I found them confusing. Here is my modified
approach:
(1) Estimate the amount I want withheld in 1999
by adjusting my 1998 tax forms (use a spread-
sheet or tax filing program).]]

OK...

[[ (2) File a w-4 claiming married and 10 dependents,
(Note I don't have 10 dependents).
I can do this via the computer, this will lead
to underwithholding of taxes I want withheld.]]

And my also lead to an underpayment penalty assessed against you. You might want to read my post on estimated taxes and the underpayment penalty in the Taxes FAQ area. You REALLY might want to check it out.

This is why you are finding the W-2 forms so confusing...they won't let you do what you really want to do.

[[ (3) Ask for "additional withholding" of the
difference between 1 and 2. This way I can
precisely get my withholding where I want it.
I avoid the tedious and inaccurate calculations on
form w-4 and I gain precision for the amount I want
to withhold. I can fine tune this amount later. ]]

Sure...that will get you out of the underpayment penalty. And as long as you can compute PRECISELY what your withholding will be at married-10, it might even work.

It is certainly unique...and a different way to go about things...but it certainly looks like it could and should work.

Good luck...
TMF Taxes
Roy

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