Taxes

[pixiegirl]

Ok here's the deal. This year I got everything I paid out in federal taxes back. I don't expect this year to be much different since I didn't get a huge raise and aren't planning any life changing events. I want to change my filing status so that I get it throughout the year. Should I chose exempt since I got everything back?

 

[Steve]

You may have gotten it all back because of the mortgage points deduction. You won't have that deduction next year. Try reworking the numbers without the points deduction and see if that changes your expected return for next year. :shrug:

 

[Pegster710]

Ok here's the deal. This year I got everything I paid out in federal taxes back. I don't expect this year to be much different since I didn't get a huge raise and aren't planning any life changing events. I want to change my filing status so that I get it throughout the year. Should I chose exempt since I got everything back?

Fill out a new W-4 from www.irs.gov. It should guide you to be very close to having -0- money due or refunded. Turn the form in to your employer.

 

[pixiegirl]

You may have gotten it all back because of the mortgage points deduction. You won't have that deduction next year. Try reworking the numbers without the points deduction and see if that changes your expected return for next year. :shrug:

Nope, I claimed the kiddos B claimed the house.

 

[Oz]

Yup - Fill out a new W4... Be careful about taking too many deductions, or claiming exempt. Did you marry last year? If so, depending on when, you may have had single withholding for all or part of the year, but paid lower taxes when you filed as married. If you had points from a mortgage, that too would decrease your income tax liability. Your W4 update should also be closely coordinated with your husband's W4 status.

Personally, I'd make a small tweak, (ie. update your W4 to reflect married, and the exemptions for your husband and children) and go through a pay period or two to see what effect it has on your taxes/paycheck. Then you can determine if you need to make another small tweak.

 

[pixiegirl]

Fill out a new W-4 from www.irs.gov. It should guide you to be very close to having -0- money due or refunded. Turn the form in to your employer.

I did that and I've got 10! That seems like so much.

 

[Oz]

I did that and I've got 10! That seems like so much.

You aren't supposed to count felines and canines...

 

[Dymphna]

Don't claim "exempt" It'll get you in trouble, because you don't have a legal status for it.

Didn't you have some time off for maternity leave? Unless you were getting full pay during that time (If you were, can I have your job) you had a reduced income for a time that you won't have this year.