For some reason I always find the W-4 worksheets more complicated than my actual taxes, probably because they give an answer in "exemptions" which are related to nothing. 23 exemptions, what does that really mean? So, instead, I always find it easier, and clearer, to go ahead and calculate my actual taxes (which is what irasmilo did). I like to remind people that you can do this any time of year - you don't have to wait for your W-2, or tax tables from the gov't. You will need to keep track of things, but that ends up saving you time when you go to file anyway. I usually do my taxes at the beginning of the year, at least once in the middle of the year, more if there has been some significant change (being laid off, maternity leave, getting a raise, etc.), and close to the end of the year. I am not recommendeing this for everyone, but it prevents surprises, let's me adjust things as necessary throughout the year, and makes filing my taxes a snap. So just a thought for anyone having trouble with the W-4 worksheets!

Kim