Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 04-19-2016, 08:39 PM
Junior Member
 
Join Date: Apr 2016
Posts: 1
Angry W4

I have to pay 4 grand in taxes for 2015 cause I raised my allowances for 2015. I
have a stepdaughter who turned 17 so she no longer qualifies for the tax credit. My wife stopped working. I'm the head of household and only bread winner. How should I file on my w4 for the 2016 tax year so I could break even with Uncle Sam at tax time?



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 04-20-2016, 02:28 AM
Moderator
 
Join Date: Oct 2010
Posts: 5,258
Quote:
Originally Posted by Squad65 View Post
I have to pay 4 grand in taxes for 2015 cause I raised my allowances for 2015. I
have a stepdaughter who turned 17 so she no longer qualifies for the tax credit. My wife stopped working. I'm the head of household and only bread winner. How should I file on my w4 for the 2016 tax year so I could break even with Uncle Sam at tax time?
?======== The goal is to get your refund or tax due as close to $0 as possible.

Read more: How to Fill Out a W-4 Correctly | RapidTax hard to tell to accurately decide withholding allowances on your W4 to break even with irs at tax; Withholding allowances do not solely pertain to dependents or to the personal exemption amount, though withholding allowances are related. A withholding allowance is a way for your payroll department to use the look-up tables provided by the IRS to figure out how much tax to withhold from each paycheck. A withholding allowance represents your total tax deductions divided by the personal exemption amount. This results in a ratio, and this ratio is how many withholding allowances you should claim. For example, say you qualifiy as head of household, and have one dependent, step daughter as your spouse can not be yoru depednent. Let's further assume that your deductions consist of the standard deduction and 3 personal exemptions (one for yourself and, your spouse oneyou?re your step daughter ). The math you?re your withholding allowances would look like this (all figures below are for the 2015 tax year):
Standard deduction: 9,250
Personal exemptions: 3x 4K = 12K
Total tax deductions: 9,250 + 12K = 21250
Deductions divided by one personal exemption amount:21250/ 4,000 = 5.3125
In this example, you would claim HOH and 56 withholding allowances on her W-4 Form



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply



Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.