Author Topic: Tax Withholding? | Need $$  (Read 723 times)

Help Me :)

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Tax Withholding? | Need $$
« on: January 03, 2018, 04:43:34 PM »
I've been watching Dave Ramsey Videos, and realized that I could change my tax witholdings so that I have more immediate take home (I need to pay off A LOT of debt from previous credit cards & unemployment).

Question to you - any calculators or is there anyone who can help me run calculations? I claim 0 and get around $2k back every year - California resident. I file single, I have no exemptions, no property, no dependents, minimal deductions, no savings, no 401k, no stock - a very cut and dry tax return every year with one single income. I owe nothing to the IRS, am not in collections, etc.

I want to claim my highest amount to where I get minimal or no tax return, but I do NOT want to owe any money.

Any help appreciated :)


Help Me :)

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Re: Tax Withholding? | Need $$
« Reply #1 on: January 03, 2018, 04:49:27 PM »
Going to reply to all 3 since my computer lagged out and posted it 3 times! FYI I reported 2 of the posts so that they get removed. Apologies, let's hope any advice is on the thread that stays....

GetSmart

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Re: Tax Withholding? | Need $$
« Reply #2 on: January 03, 2018, 04:54:37 PM »
Try turbo tax -- tax caster. 

It should tell you what you owe/ or will get back with current inputs.  Take the total amount paid / owed and divide by number of paychecks. 

There's a W-4 calculator somewhere -- use that to get close to what your withholding should be.

Help Me :)

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Re: Tax Withholding? | Need $$
« Reply #3 on: January 03, 2018, 05:13:40 PM »
Try turbo tax -- tax caster. 

It should tell you what you owe/ or will get back with current inputs.  Take the total amount paid / owed and divide by number of paychecks. 

There's a W-4 calculator somewhere -- use that to get close to what your withholding should be.

I'll give it a try, thank you!

BrightFIRE

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Re: Tax Withholding? | Need $$
« Reply #4 on: January 03, 2018, 07:27:36 PM »
You may want to hold off until the end of the month. Per the IRS, "Due to the tax law changes signed into law on December 22, 2017, the IRS withholding calculator is currently unavailable. ‎The IRS will update the calculator as soon as updated withholding information is available.
 
In addition, the IRS is working to develop withholding guidance to implement the tax reform bill. We anticipate issuing the initial withholding guidance in January, and employers and payroll service providers will be encouraged to implement the changes in February."

Dicey

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Re: Tax Withholding? | Need $$
« Reply #5 on: January 07, 2018, 01:22:06 PM »
Not sure how new tax "reform" will change this, but you only have to have withheld what you paid the previous year. Look it up, divide by the number of paychecks you receive and that's the amout you need to withhold each paycheck. Advise HR, get/submit the form and you're done. NOTE: This doesn't guarantee you won't owe taxes next year, but you won't be penalized if you do, so make sure you keep a reserve just in case.

MDM

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Re: Tax Withholding? | Need $$
« Reply #6 on: January 07, 2018, 01:52:19 PM »
I claim 0 and get around $2k back every year - California resident.
If you are considering federal only, each W-4 allowance has reduced, and may continue to reduce when the new W-4 comes out (see IRS Statement Withholding for 2018 | Internal Revenue Service), your withholding by $4050 * (your tax bracket, assuming your W-2 income is your only income).

E.g., if your salary makes it appear you will be in the 24% bracket, adding two allowances to your W-4 should reduce your yearly withholding by 2 * $4050 * 24% = $1944.


Hargrove

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