Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 2
dstybttle911: Thats also happened to my husband and myself. Were two income, no kids and no home interest to deduct. Both our employers take out the maximum withholding and we still had to pay. Even with my school deductions and medical deductions (i'm diabetic), we paid almost $1000. We arent able to buy a house yet, and I refuse to have children just for a deduction (haha). What else can we do? We both contribute to 401ks pretax and have all our earmarked medical money taken out pretax.

me: The statement "both our employers take out the maximum withholding..." isn't correct. There is no maximum withholding (other than 100% of gross pay). When you complete the W-4, you can enter any amount you want as additional withholding on line 6. If you fill out your W-4 accurately, you should be able to achieve any end-of-year result you want. By the way, many tax preparers recommend owing money at the end of the tax year since receiving a refund means that you've given the government a tax-free loan.

catscanner: You need some tax "losses" to offset your earned income. Rental property is a serious consideration.

me: Rental property cannot receive "serious consideration" without knowing more about dstybttle911's financial situation. If her joint AGI is more than $100K, her ability to claim any losses each tax year is limited and if her joint AGI is over 150K, there is no deduction at all. She would get all the headaches of being a landlord and no tax benefit until the day she sold the property.

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.