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Author: tabbone Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121061  
Subject: My W4 Date: 3/6/2000 6:11 PM
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When I fill out my W4 to take into account my new house, do I only multiply the monthly expenses (property tax and interest) by 10 months (April to December) or by the whole year? e.g If I claim 15 or 16 exemptions as calculated on an entire year, will it cause me to owe come tax time? Also, is the state tax that I have deducted out of my biweekly paycheck tax deductible when itemizing? Thanks. (I'm almost finished moving!!) :)

--Tabbone
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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: 31131 of 121061
Subject: Re: My W4 Date: 3/7/2000 11:19 AM
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<<When I fill out my W4 to take into account my new house, do I only multiply the monthly expenses (property tax and interest) by 10 months (April to December) or by the whole year? e.g If I claim 15 or 16 exemptions as calculated on an entire year, will it cause me to owe come tax time?>>

If you "claim" deductions for the entire year, but only pay them for part of the year, it's likely that you'll have a balance due come April 15th.

Use the W-4 calculator at the IRS or Edcosoft web site to help you out. In those cases, you will be directed to only enter the deductible itemized expenses that you will PAY during the year. That should give you your appropriate answer. Then, in year 2, you'll complete another W-4 withholding certificate to recognize those deductible expenses that you'll pay for all 12 months.

<< Also, is the state tax that I have deducted out of my biweekly paycheck tax deductible when itemizing? >>

Yup...

TMF Taxes
Roy



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