how many dependants to claim?

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sandycheeks
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Joined: Thu Apr 19, 2007 7:58 am
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how many dependants to claim?

Postby sandycheeks » Tue May 22, 2007 2:49 pm

Edited post due to possible ambiguity.

We are a single income household. Throughout the year for 2006, we used 2 for the number of allowances we claimed. But we got a big return, 9k. So we decided to increase it to 4. Now I'm thinking that 4 isn't enough.

I don't have a huge problem with getting a refund even though I understand "don't give the govt a free loan". But we've run into a cash flow situation, particularly when it comes to asset builder contributions. I'd rather invest on a monthly basis rather than a lump sum at the end of the year.

So how do we figure out the correct amount of tax withholdings to claim in order to come close to breaking even? (Erring on the side of caution and getting a small return if need be)

How did/do you decide how many to claim?

sandycheeks
Posts: 231
Joined: Thu Apr 19, 2007 7:58 am
Contact:

Postby sandycheeks » Tue May 22, 2007 3:14 pm

OK, I found the IRS withholding calculator.

http://taxes.about.com/gi/dynamic/offsi ... %2C00.html


Assuming that this is accurate, I've got my answer.


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