I bought a condo, and want to write off the taxes and interest that I will pay, and wanted to know how this system works.
2007-09-27 06:09:48 · 10 answers · asked by aabdullayev@sbcglobal.net 1 in Business & Finance ➔ Taxes ➔ United States
Forgot to mention, I'm married with one child(21mos).
2007-09-27 06:15:53 · update #1
This is not a matter to be taken lightly, you could open yourself to a large tax burden if you do not know what you are doing. You need to contact an account who has experience and can guide you in the right direction. On April 15th, 2008, you will be glad you did.
Best of Luck
2007-09-27 06:18:29 · answer #1 · answered by sosezshe 4 · 0⤊ 0⤋
There are worksheets with the W-4 to calculate how many allowances you are allowed to claim. You start with one for each exemption (yourself, plus a spouse and kids if you have them). Then there are additional situations you can claim allowances for.
One is for itemizing deductions. There's a worksheet for that. Or estimate what your itemized deduction will be for the year, including your condo interest and real estate taxes, then subtract your standard deduction of $5350, or $10,700 if you're married, since that's already figured into the withholding tables. Divide the answer by $3400, and that's how many additional exemptions you can claim on your W-4 for the itemizing.
Be aware that people often think the tax benefits of owning a home are more than they really turn out to be. If your mortgage interest and real estate taxes total $10,000 and you have an additional $4000 in itemized deductions, and you're married and in a 15% tax bracket, your tax savings from itemizing would be $495 for the year.
2007-09-27 06:23:25 · answer #2 · answered by Judy 7 · 0⤊ 1⤋
Just claim like 6 or 7 dependents for a portion of the year, generally half, and then take off those dependents for the rest of the year before tax time shows up. This way all the money that you are "saving" in the first part of the year, you can use as a cushion when they start taking it all back at the end of the year.
2007-09-27 06:20:00 · answer #3 · answered by acey5654 3 · 0⤊ 0⤋
Sometimes people who have a hard time saving money have more taken out of their checks. Next April they will get the excess money back, and feel like they have a little windfall. Others can put money aside each payday for a rainy day, or retirement, or have the money to pay Uncle Sam if not enough was taken out of their checks during the year. Think about what type of person you are before having less taken out each week.
2016-04-06 03:56:45 · answer #4 · answered by ? 4 · 0⤊ 0⤋
You can't claim exempt unless you're elligible - its against the law. You can however claim up to 9 w/out your employer needed to report to the IRS. However, be very careful, you could end up owing a bunch at the end of the year. I'd go somewhere in the middle, maybe 5 - but truly your best bet would be to ask a CPA.
2007-09-27 06:14:09 · answer #5 · answered by slushpile reader 6 · 0⤊ 0⤋
If you want more cash, claim exempt or a ton of deductions. However, depending on your income, you may end up with a big tax bill come April. Sock some of that cash away, just in case.
2007-09-27 06:14:58 · answer #6 · answered by Lorien C 3 · 0⤊ 0⤋
Claiming more tax exemptions will put more money in your paycheck, but reduce your refund or increase what you owe to the IRS at the end of the year.
.
2007-09-27 06:20:42 · answer #7 · answered by ? 7 · 1⤊ 0⤋
Claim 2 children, and 1 spouse.
2007-09-27 06:12:24 · answer #8 · answered by turtlemaster 1 · 0⤊ 1⤋
get an accountant..
they do everything for you legally.
2007-09-27 06:12:35 · answer #9 · answered by kennilope 3 · 0⤊ 0⤋
EXEMPT!
2007-09-27 06:12:17 · answer #10 · answered by Pammie B 2 · 0⤊ 3⤋