Free Ebook.


Enter your email address:

Delivered by FeedBurner

« Save Money when Shopping Online: Always Search for a Promotion Code First | Main | Free Book Giveaway Reminder »

October 25, 2006

Comments

Feed You can follow this conversation by subscribing to the comment feed for this post.

An aside to this tip: Don't use that "extra" money on crap. Use it for something that will help you, like an IRA, emergency fund, or mortgage payments.

I hate calculators like this. They are completely irrelevant to me. I have my taxes figured out for my past situation, where I wind up owing about $100 every year come tax time.

This year, with a house, new side income, a marriage, and my wife quitting her job to go to law school, everything is different so I have no idea if I am withholding too much or not enough.

These tools ask how things were last year, but give me no way to input what my actual situation is. Obviously, if I got a big refund last year, then I do not need as much withheld. I'd rather be able to give it hypothetical info and have it tell me how much I should be having withheld.

Am I naive? I've always filled out my W-4 'by the book' following its instructions, as I figure that's the law and doing otherwise (i.e., adding another exemption/deduction even though I am unmarried and have no dependents) would be illegal.

I have used that calculator before and it told me to report the same number of withholdings that I already do...so it was pointless to me. And I like getting a refund, and use it to pay off bills or get that extra something (like new glasses). This year it will go towards grad school!!

Cleophus,

You can complete your W-4 any way you would like - it is how you file your taxes (as single, married, etc.) that has to be truthful.

The W-4 is basically a form that employers use to determine how much you take out of your check for taxes...

Blaine,

I totally see your point & that is why I do a projection at least every three months that tells me how much I am on track to earn and withhold for the year along with an ESTIMATE of end of year deduction, exemption, credits, etc to get me to a final tax payable/receivable figure.

Maybe Mr FMF could post a formula for people in your situation...


The comments to this entry are closed.

Start a Blog


Disclaimer


  • Any information shared on Free Money Finance does not constitute financial advice. The Website is intended to provide general information only and does not attempt to give you advice that relates to your specific circumstances. You are advised to discuss your specific requirements with an independent financial adviser. Per FTC guidelines, this website may be compensated by companies mentioned through advertising, affiliate programs or otherwise. All posts are © 2005-2012, Free Money Finance.

Stats