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View Full Version : heads up -- time to go change your withholding and hold on to your wallet


chadbag
01-09-10, 17:52
They think they need more of your money

http://biggovernment.com/2010/01/06/dems-tinker-with-withholding-tax-tables-for-2010/#idc-cover
snafu
01-09-10, 18:46
one step closer
woodandsteel
01-09-10, 20:43
Uh oh!:confused:

I am terrible at math. Would a flat tax be a better idea????

Also, since we are talking about taxes, I have never changed any of my witholdings since I got married and started having kids. Should I be doing that now?
czydj
01-09-10, 21:13
They think they need more of your money

http://biggovernment.com/2010/01/06/dems-tinker-with-withholding-tax-tables-for-2010/#idc-cover

Thanks for the heads up... I just signed into work and changed mine! No free money for Uncle Barry, Wacky Aunt Nancy or Dirty Harry...
czydj
01-09-10, 21:19
Also, since we are talking about taxes, I have never changed any of my witholdings since I got married and started having kids. Should I be doing that now?

The number of exemptions you claim on your W-4 affects how much is withheld from your paycheck. Some folks feel getting a big tax return is great, but it is actually giving free loans to the federal government. The more exemptions you claim, the more you get to see on every payday. You do have to be careful because if you claim too many exemptions, you could have a big tax bill in April. If you're not sure about all this, you can consult a tax professional...
SHIVAN
01-09-10, 21:20
...you can consult a tax professional...

Probably good advice for most folks anyway. :)
czydj
01-09-10, 21:32
Probably good advice for most folks anyway. :)

Yes, totally agree. They really aren't that expensive either, especially for a consult on something like withholding and maximizing take home pay.
snafu
01-09-10, 22:25
Have a good friend that claims 14 kids. Ya he owes ever year,but hates loaning his hard earned cash to Uncle for free.
ST911
01-09-10, 22:57
Some folks feel getting a big tax return is great, but it is actually giving free loans to the federal government.

I'd rather pay in than get a return. I know how to use a savings account, and it comes with interest, too. :)
czydj
01-10-10, 06:51
Have a good friend that claims 14 kids. Ya he owes ever year,but hates loaning his hard earned cash to Uncle for free.


I think if I claimed that many exemptions, I might have under-payment penalties. I forget when those kick in, but that's what I would use a tax pro to figure out if I went with a strategy like that.
Business_Casual
01-10-10, 08:38
Have a good friend that claims 14 kids. Ya he owes ever year,but hates loaning his hard earned cash to Uncle for free.

Unless you actually have that many dependents, I'm not sure that is legal; in case anyone is thinking they should try it.

M_P
czydj
01-10-10, 09:04
Unless you actually have that many dependents, I'm not sure that is legal; in case anyone is thinking they should try it.

M_P

You can claim any number of exemptions on your W-4, all the way up to "exempt". You have to report actual, legal number of allowances on your 1040. IIRC, underpayment penalties could start to come into play if you don't pay enough taxes through the year on a regular basis.

If you're planning on using this strategy, consult a tax pro so you don't get penalized by the IRS and have to sell a couple of M4's to cover the bill.

I started looking on irs.gov and the H&R Block site, but man, no thanks. Taxes and government regulations are so insanely complex and muddled, I hate reviewing them. FWIW, I got my degree in accounting and finance, but got out of it for more exciting endeavors...