Kristen and I made decent money and we're with ya.
We may earn a small commission from affiliate links and paid advertisements. Terms
foil hat:
some day, uncle sam may say.. sorry, we can't afford to give refunds this year.
And you'll be screwed.
The ones who didn't give it to him to hold won't lose out.
When clients call i tell them to just skip the worksheet all together and provide them with the answers for boxes 3 and 5.
Then they will try and go back to the worksheet and ... but this says such and such... NO skip the worksheet, here's all you need to know.
Married 3, or Single 1 etc.
Yes, that is the basic idea. That assumes that her income will remain the same through out 2016. If her income starts going up or down your equation changes and you may not have the desired results.Maybe I just solved my own question...I just looked at my W4 information online and I see that after your allowances you can specify an additional amount that you'd like taken out of your paycheck. I'm guessing that's where I need to allocate additional funds. Next question then...knowing how much our refund dropped, is that the target amount I should shoot for when deciding how much to take from each paycheck depending on how many paychecks she gets a year?
For example if the number is $1,600 and she gets paid 12 times a year, I'd want an additional $133 taken out of each paycheck?
Yes, that is the basic idea. That assumes that her income will remain the same through out 2016. If her income starts going up or down your equation changes and you may not have the desired results.
We run into this with married couples that have different income levels, = different withholding rates on payroll. People who have multiple W-2's also run into this problem as each employer only withholds based on the expected yearly wages for that one company. So lets say 10 w-2's at 10k each, all in the 10% bracket, but year end they have 100k and wind up in the 25% or higher bracket depending on deductions etc. That's always a shock.
I assume that your separate incomes are in a lower bracket than the combined marginal rate for filing together, so that is why you are getting slammed when you file.Starting to get pissed at the tax system. 33% marginal tax rate (estimate, haven't filed yet). Both my wife and I max out our 401k, I claim 2 mortgage interests (home and vacation club), student loan interest. I have 2 kids, 1 in elementary school, 1 in daycare (which I spent 12k on last year). Getting back about a K. Not sure what else I can do to lower my tax risks. We file as single & 0. I look forward to the chunk of change as it supports my Bob Vila habits for the year haha.
do you mean the w4 is set this way for withholding?We file as single & 0
pretty much, but this assumes everything is the same.Maybe I just solved my own question...I just looked at my W4 information online and I see that after your allowances you can specify an additional amount that you'd like taken out of your paycheck. I'm guessing that's where I need to allocate additional funds. Next question then...knowing how much our refund dropped, is that the target amount I should shoot for when deciding how much to take from each paycheck depending on how many paychecks she gets a year?
For example if the number is $1,600 and she gets paid 12 times a year, I'd want an additional $133 taken out of each paycheck?
I was just informed that I need to fill out a 1096 form and roughly a dozen 1099-MISC forms for the Non-Profit that I was treasurer for up until December of this year. I ordered some from the IRS but I am getting nervous that I will not have them in time. I know that I can buy them from Office Depot/Max but would prefer not to spend money on them as I would have to buy way more than I need. Do you know where I can download/get a copy of these forms? I found a couple of places but they warn about being fined if the IRS can't scan them.