My wife and I currently claim single/0 exemptions on our federal W-4. We generally get about $2000 back with no deductions.
We just bought a house and will pay $14,000 interest in 2008. If we switch each of our exemptions to married/1, do you think we'll continue to get money back? Our gross income is roughly $65000.
Where can I find how much money will be withheld out of our checks?
2007-06-25 14:59:57 · 2 answers · asked by sdmphx777 2 in Business & Finance ➔ Taxes ➔ United States
To file for the mortgage deduction you will need a long form itemized deduction filing
If that is your only deduction for the year you may very well
pay more in taxes than if you filed short form with standard deductions.
There is not a big difference in married 0 and married 1
at your income level
There is a huge difference between single 0 and married 0
You said you got back $2000 with no deductions
surely you claim 2 standard not 0? when you file your return
It is very easy to estimate what will happen
Redo last years taxes on a long form with itemized
deductions I am sure the cost of deductions will surprise you
Also beware of refinancing if they change the value of your home for the purpose of loaning you money you just had a capital gain.
2007-06-25 15:15:59 · answer #1 · answered by Anonymous · 0⤊ 0⤋
You should be able to safely change to married/1 and still not owe, but you might or might not get as big of a refund as you've been getting. That depends on what other itemized deductions you have. You'll also be able to take any real estate taxes, and either state and local taxes or sales tax, and any eligible charitable contributions. There are a number of other expenses that are allowable itemized deductions - download schedule A and its instructions at irs.gov to see what they are.
2007-06-26 00:42:51 · answer #2 · answered by Judy 7 · 0⤊ 0⤋