IRS Calculator for W-4 Allowances

**jpg7n16** · 01-31-2011, 07:36 AM

You're probably okay.

How to Fill Out Form W-4

See step #8.

From: How to Fill Out Form W-4

8. If you claim more than 9 allowances, your employer may be required to send your W-4 to the IRS for review. Don't be alarmed. People with incomes over $100,000 and with substantial itemized deductions may need to claim over nine allowances.

**creditcardfree** · 01-31-2011, 09:05 AM

Yes, I think it is likely correct. I believe I run the calculator for our family with suggestion of 11. Although, I've kept it at 9. We have a slightly higher income and two children, so yes, it is very likely.

**cicy33** · 02-02-2011, 09:48 AM

I say ignore the worksheet and just put the number you want to claim. I find those worksheets confusing and I am a payroll person!!!

**creditcardfree** · 02-02-2011, 10:26 AM

Originally posted by cicy33 View Post

I say ignore the worksheet and just put the number you want to claim. I find those worksheets confusing and I am a payroll person!!!

True that you can claim what you want to claim. The worksheets are actually very valuable and can pinpoint correct withholding based on individual circumstances. As a payroll person, I'm sure it is hard to assist someone filling the worksheet out when you don't know their personal finances.

**Slug** · 02-02-2011, 11:30 AM

Just another piece of the tax code that's too convoluted to make sense.

**cicy33** · 02-03-2011, 03:20 PM

Originally posted by creditcardfree View Post

True that you can claim what you want to claim. The worksheets are actually very valuable and can pinpoint correct withholding based on individual circumstances. As a payroll person, I'm sure it is hard to assist someone filling the worksheet out when you don't know their personal finances.

Absolutely you can claim a 100 if you want but that it isn't the smart thing to do. you don't need to know someones financial finances to advise them what to do. All you need to know is how many dependents, tax status upon filing, and general household gross income. and that is only if they want to tell me. I don't ask. But if they do I advise them to never claim as many dependents as they have to claim. I usually would say to claim 1 if they are claiming themselves and a child, or two if there are three. What if I recommended to claim all 3 and they ended up paying in taxes? I would feel so bad.

A girl at work came to me the other day after I had given out W2's and inquired why her federal tax taken out was so much less than the prior year. I explained to her that due to her income the federal guidelines had changed last year and she had less federal tax taken out. She was worried because she didn't want to have to pay in. Like me, she likes a refund. just one less thing to worry about. Mind you she should have paying attention all year but oh well. It is not my job to determine what tax deductions a person should be using. I can only process what they give me. but if they ask, I will try to help.

Just for fun I went to the site and did a w4. according to it I should be claiming 2. That is so wrong. I am a single, no child, female. If I were to claim two I would end up paying in. when you are single you pay such high taxes!

**creditcardfree** · 02-03-2011, 04:03 PM

The goal really should be to keep the money that you earned and only get a small refund or have to pay a small amount. The higher number you claim on a W4 lowers the amount of taxes withheld from your paycheck, which increase the amount of your paycheck each payperiod, which should decrease the amount you loan to the government interest free for the year. Yes, this will decrease your refund, but would likely still put you in a position for small refund.

The reason many families can claim so many exemptions is because of itemized deductions which are higher than the standard deduction and families with children qualify for additional tax credits which offset tax owe, therefore less we need to pay in. We claim 9 on my husband's w4, we own a home, have two children. Amazingly we almost always get a refund. Last year, we would have came at zero owed and zero refund if it were not for the Making Work Pay Credit.

I would not ever tell anyone that the IRS website is wrong. I have found it to be quite accurate. It's only wrong when your goal is to get a large refund. Which I believe is a bad financial move.

**cicy33** · 02-03-2011, 04:22 PM

Originally posted by creditcardfree View Post

The goal really should be to keep the money that you earned and only get a small refund or have to pay a small amount. The higher number you claim on a W4 lowers the amount of taxes withheld from your paycheck, which increase the amount of your paycheck each payperiod, which should decrease the amount you loan to the government interest free for the year. Yes, this will decrease your refund, but would likely still put you in a position for small refund.

The reason many families can claim so many exemptions is because of itemized deductions which are higher than the standard deduction and families with children qualify for additional tax credits which offset tax owe, therefore less we need to pay in. We claim 9 on my husband's w4, we own a home, have two children. Amazingly we almost always get a refund. Last year, we would have came at zero owed and zero refund if it were not for the Making Work Pay Credit.

I would not ever tell anyone that the IRS website is wrong. I have found it to be quite accurate. It's only wrong when your goal is to get a large refund. Which I believe is a bad financial move.

OK, first and foremost. The IRS is not GOD, they are not perfect. they make errors. hence the reason the new W4 wasn't even ready until after the first of the year. If I were to claim two on my taxes at work I would end up paying in. maybe not much but still some. so, yes, they are wrong. and sometimes it is hard to come up with several hundred if you just don't have it. Just like everything else in the world tax tables and forms are geared for millions of people and not for the individual. That is why we as individuals needs to step in and say okay, this does not work for me.

Second, I think the goal it depends on the person. My goal is to not have to pay in. I don't make a lot of money and we are struggling like most. but we get by. I will probably get a refund. but not a huge one. so if I were to get that extra 50 or so each month right now we might spend it. by not doing so I get it all at once and can apply it to something in one lump sum. sometimes that is clothes, or extra bills we didn't plan on, or whatever. When my daughter was small it was usually clothes for her. and this time of year is a good time for sales. We don't buy clothes very often so this is usually when we do. So my goal is not to pay in and it would be nice to have a little chunk of money at the end of the year. or perhaps pay a little extra to the light bill since they in their infinite wisdom have decided to double my bill in one month even tho I was being very careful and freezing!

Third, What is your opinion of a large refund. I only consider refunds of more than $2000 to be large personally. Again, this is an opinion. not fact

Finally, it is not a "bad financial move" to have a refund coming. It is also YOUR opinion that it is not a good idea. I have never understood why people say this. For YOU it is not a good idea. For some people this is a great idea. Not everyone is a good saver. I know I am not. one example, my dtr and her dh are not the best at saving money. they aren't the worst but you know how it is. their bills are paid so their business. however, they need a new roof, not because it is old, but because of a bad storm. So they need to spend alot on a new roof. They will get a really big refund cuz I am guessing he only claims one at work and then picks up her and the kids at the end of the year. (I do their taxes, but don't question what he is doing, not my business unless he asks) she doesn't work. now, if they were to receive the extra few hundred per month they would have difficulty saving it. doing this they are sort of putting it in a savings account. true a no interest one but it isn't like interest accounts pay crap now anyway. so they will be fixing their roof with cash. no credit. so to ME that seems like a smart financial move. they knew their limitations and worked around them.

IRS Calculator for W-4 Allowances