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Author: cnj63 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121565  
Subject: Personal Exemption Date: 2/8/2001 1:40 PM
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I'm a single male. Annual income 34,000. Last year I claimed one dependent for 6 months; remaining 6 months, claimed 0. I rent and have no other income. I want to know how to figure out what's the best way to come out even at the end of the year with the IRS. Not owing them; them not owing me. thank you
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Author: LooseChange One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 46016 of 121565
Subject: Re: Personal Exemption Date: 2/9/2001 8:13 AM
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This is certainly not the only way to do it, but I had pretty good success using TurboTax's tax planning calculations (I know it's available in the Deluxe edition, not sure about the other edition). I got married last year in May, so both my wife and I had already had taxes held at the single rate. We were in different tax brackets while single, I had a mortgage and capital gains/interest/dividends to consider and the calculation was a bear to do by hand.

TurboTax asked all of the questions (including the amount of taxes already paid) and figured everything up for us so we would run out right at the end of the year. The result was one that I didn't expect (it said to list my wife as married but tax her at the single rate with 1 exemption and tax me as married with 3 exemptions).

I'm not completely done with the return this year (I am done with the income), but it looks like TurboTax nailed it for me. Just an option for you.

If you want to do the calculation by hand, go get Publication 15 from www.irs.gov (which shows how employers will take out taxes for the year) and start backfiguring based on your situation. If your situation is not complicated, then it would only take an hour or so to complete this task (most of the time spent wading through the publication).

Do NOT use the IRS's online W-4 calculator. I used this thing to compare with TurboTax's results, and it had me WAY OVERPAYING for the year (how convenient for the IRS).

Regards,
LooseChange

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Author: pmarti Big funky green star, 20000 posts Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 46096 of 121565
Subject: Re: Personal Exemption Date: 2/9/2001 9:55 PM
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I'm a single male. Annual income 34,000. Last year I claimed one dependent for 6 months; remaining 6 months, claimed 0. I rent and have no other income. I want to know how to figure out what's the best way to come out even at the end of the year with the IRS.

Back in my one job, standard deduction, little non-wage income days, claiming the two withholding allowances indicated by the W-4 worksheet always resulted in a small refund or balance due.

Phil Marti
VITA Volunteer

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