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how do I avoid paying taxes so that I do not owe any taxes or get a tax refund. How do I know how many exemptions to write
Raleigh, NC
Viewed 52 times.
Posted 30 days ago in Tax
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I want to break even with my tases - not owe any or get a refund so how do I know how many exmptions to write? I want to do this so I get the maximum amount possible each paycheck. How do I go about figuring out how to do this?
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Answers (3)Steve Fromm
This attorney is licensed in Pennsylvania.
Posted 29 days ago.
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Use Form W-4. There is a calculation format with the instructions to this form. It allows you to fine tune the number of exemptions you claim so your withholding tax will be very close to the amount of taxes you ultimately owe. Check it out.
Hope this helps. LEGAL DISCLAIMER Mr. Fromm is licensed to practice law in PA. The response herein is not legal advice and does not create an attorney/ client relationship. The response is only in the form of legal education and is intended to only provide general information about the matter within the question. Oftentimes the question does not include significant and important facts and timelines that if known could significantly change the reply or make such reply unsuitable. Mr. Fromm strongly advises the questioner to confer with an attorney in their state in order to ensure proper advice is received. By using this site you understand and agree that there is no attorney client relationship or confidentiality between you and the attorney responding. This site should not be used as a substitute for competent legal advice from a licensed attorney that practices in the subject area in your jurisdiction and with whom you have an attorney client relationship. The law changes frequently and varies from jurisdiction to jurisdiction. The information and materials provided are general in nature, and may not apply to a specific factual or legal circumstance described in the question or omitted from the question. Circular 230 Disclaimer - Any information in this comment may not be used to eliminate or reduce penalties by the IRS or any other governmental agency. Benjamin Yu
This attorney is licensed in California and 1 other state.
Posted 28 days ago.
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The IRS website has a online withholding tax calculator. You answer a serious of short questions and at the conclusion it will suggest the number of exemptions to claim.
The great Milton Friedman of the University of Chicago was responsible for mandatory Federal income tax withholding. Henry Daniel Lively
This attorney is licensed in California.
Posted 27 days ago.
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The best way to do this is by determining exactly what you need to withhold this year to break even. You will need to prepare a tax projection and determine what you will owe in taxes on a year by year basis. There are a number of programs out that can assist you with this process. You will probably need to revisit the projection each quarter end and adjust for actual results. Then fill out your W-4 to exactly withhold this amount. You can do this with exemptions, plus additional withholding from your check, or you can do a Federal and State withholding tax block, and have your HR department withhold exactly the amount you calculated in your tax projection for State and Federal taxes divided by the number of your pay periods.
Any individual seeking legal advice for their own situation should retain their own legal counsel as this posting provides information that is general in nature and not specific to any person's unique situation. Circular 230 Disclaimer - Advice given in this posting cannot be used to eliminate penalties with the IRS or any other governmental agency. |