Author Topic: Tax Refund Question  (Read 2276 times)

Kristin8802

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Tax Refund Question
« on: January 22, 2016, 09:58:32 AM »
Hi-
New poster here! I just did my taxes last night and am getting a huge refund ($1512 federal and $4152 WI).  I am trying to get this closer to $0. Please help me figure out what to claim on my w4
Incomes:
Husband: $85,000/year paid Monthly
No pretax deductions (no 401k available)
Me: $40,000/year paid biweekly
Pretax deductions:
Health Insurance premiums: $1950/year
Flex Medical and Daycare: $6,000/year total
401k: $18,000/year with $4,500 match
Rental property net income: $4,500/year

Deductions:
Kids: 2 kids
Charitable Contributions: About $12,000/year
Mortgage Interest: $12,650
Property Taxes: $4,000 annual
Husband Traditional IRA: $5,500/year

Let me know if more info would help!
Thanks 

rubybeth

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Re: Tax Refund Question
« Reply #1 on: January 22, 2016, 10:14:17 AM »

Kristin8802

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Re: Tax Refund Question
« Reply #2 on: January 22, 2016, 12:12:06 PM »
Doesn't the IRS withholding calculator only deal with federal taxes? I'm trying to lower my WI refund. 

COlady

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Re: Tax Refund Question
« Reply #3 on: January 22, 2016, 12:21:12 PM »
Are you sure you didn't mess up your Wisconsin return? Maybe you entered your Wisconsin state tax withheld wrong on your WI return? What is your total WI tax withheld per your W-2s?

Eric

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Re: Tax Refund Question
« Reply #4 on: January 22, 2016, 01:03:41 PM »
Assuming your calculations are correct, I wouldn't even mess with changing your claim on your W-4.  Just ask your employer to change your withholding by the specific dollar amount.  So if you're getting $4100 back from WI, and you get paid twice a month, then ask them to deduct $4100/24 = $170.83 less per paycheck.  Do the same for the Feds.

MDM

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Re: Tax Refund Question
« Reply #5 on: January 22, 2016, 03:02:03 PM »
Any of the above suggestions could suffice.  With just a bit more work on your part, however, you could "learn how to fish."

E.g., see http://forum.mrmoneymustache.com/taxes/best-way-to-calculate-w-4-exemptions-for-2016/.  If you have your own spreadsheet you will be able to calculate withholding accurately.  Even more worthwhile, you will be able to evaluate tax strategies and tactics during the tax year when you are likely to have more control over your destiny.