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I am presuming you mean refund. Here is an approximation. Take your monthly payment (which I will assume includes escrowed taxes but not condo fees), multiply by 12, and divide by 2800. Then subtract 1. The argument here is that mortgage interest and taxes are deductible, but not paydown of the principal. So the 1 accounts for the paydown in the first year. Then round down to the nearest whole number, and that will be the number of exemptions you want to claim on your W-4.

Thanks JABoa. You seem to be all over these boards helping everyone. You've helped me before and want to let you know that I really appreciate it.

For some reason I thought the exemptions would be around 1 or 4. Is it unusual to have double digit exemptions? For example, a monthly payment for $3000 (including escrowed taxes but not condo fees), the exemptions would be 11.

thanks again,
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