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

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? - Is this your question? Add additional information
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Answers (3)

Steve Fromm

Steve Fromm

Contributor Level 7
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.

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Benjamin Yu

Benjamin Yu

Contributor Level 1
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.
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Henry Daniel Lively

Henry Daniel Lively

Contributor Level 7
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.
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