js3471@hou2g.UUCP (J.SCRIPTUNAS) (09/26/84)
Can someone please explain to me how I can determine the number of deductions I can sensibly claim now that I am a new first time home owner? I want to take advantage of my option to receive pro-rated monthly tax refunds instead of waiting for the end of the year. I raised the number of deductions I am claiming from 1 to 3. This may be about right for me, but it is at best a guesstimate. I've heard of others who raised their deductions to 9 and 15. Is that legal?
presley@mhuxn.UUCP (Joe Presley) (09/26/84)
> Can someone please explain to me how I can determine the number of > deductions I can sensibly claim now that I am a new first time home > owner? Get a copy of the W-4, available in public libraries or your friendly IRS office. On the back is a work sheet which lets you determine the number of deductions you could take. Then send the front part to your payroll department. I've taken 9 deductions this year (I'm single); I think if you take over 13 or 14 they'll ask you to demonstrate that you're qualified. PS. Don't ask the ATTBL payroll department to send you a W-4 since all they'll send you is the form you have to give them, not the worksheet. -- /s/ Joe Presley (ihnp4!j.presley)
js3471@hou2g.UUCP (J.SCRIPTUNAS) (09/27/84)
Thank you for your responses. I deleted my mail before I copied the addresses. Also, I did mean exemption allowance and not deduction. Jerome Scriptunas ihnp4!hou2g!js3471
bruce@hp-pcd.UUCP (bruce) (10/09/84)
<-----> Just in case 50 other people haven't responded to your note I'll tell you how I figure out how many exemptions to claim. I take the amount that I am going to be able to itemize and add the amount that I put in an IRA then subtract $2000 because it is figured into the tax tables already. Take this number and divide by 1000 to get the proper number of exemptions. This is based on the fact that $1000 is allowed for each dependent and this subtracted from the gross income in the same place as your itemized deductions are. It may not be exact but it's close enough. -- Bruce Stephens (hplabs!hp-pcd!bruce)