Yahoo Answers is shutting down on May 4th, 2021 (Eastern Time) and beginning April 20th, 2021 (Eastern Time) the Yahoo Answers website will be in read-only mode. There will be no changes to other Yahoo properties or services, or your Yahoo account. You can find more information about the Yahoo Answers shutdown and how to download your data on this help page.

Trending News

Promoted
eastcoastrockerdude
eastcoastrockerdude asked in Business & FinanceTaxesUnited States · 9 years ago

What to claim on my W-2?

I'm closing on a house (first time home buyer) in a few days and am aware that I should probably claim a different exemption rate on my W2 for this coming fiscal year.

I'm 35, single, and have zero dependants. I currently claim zero because I'm not the most fiscally responsible and would rather have a higher return than even a remote possibility of owing at the end of the fiscal year.

Should I claim 1 or 2 in lieu of the mortgage interest I'll now be able to claim? Or a different exemption status altogether?

Thanks for your help!

Update:

Thank you for the help so far and yes I meant form W-4.

I tried using the withholding calculator before I posted this question and it gave me a great idea of what my tax responsibility is but still didn't tell me, give specific examples, or make recommendations on what to claim.

Thanks again!

5 Answers

Relevance
  • falsi fiable
    Lv 7
    9 years ago
    Favorite Answer

    You mean W-4. See IRS Publication 919 to help you figure out how many allowances to claim.

    http://www.irs.gov/pub/irs-pdf/p919.pdf

    As a general rule, claim 1 allowance for each $3700 in mortgage interest and property taxes that you will pay each year. Use the worksheets in Publication 919 to get the best estimate.

    I claim 5 federal and 12 state.

  • ?
    Lv 7
    9 years ago

    At this time in your life you can NOT be sure that you will be able to qualify to use the schedule A itemized deduction for you to be able to choose to do this until the time comes and you can really determine that it will benefit you by reducing your TAXABLE income and your federal income tax tax during the 2013 tax filing season for this purpose.

    Best way simple and easy Single and -0- ZERO Allowances at this time in your life and then wait until your do your 2012 income tax return in the year 2013 to decide if you really do want to change your W-4 form an Allowances for the 2013 tax year.

    Because your itemized deductions using the schedule A of the 1040 income tax return will have to be MORE than your standard deduction amount would be for the 2012 tax year

    $5,950 standard deduction amount for a single taxpayer for the 2012 tax year.

    Do not expect too big of a change with your income tax results just because you are buying a house home at this time in your life until you really do the 2012 income tax return in during the 2013 tax filing season for this purpose.

    Hope that you find the above enclosed information useful. 12/22/2011

  • Judy
    Lv 7
    9 years ago

    How much interest do you expect to pay? How much real estate tax? How much state and local income tax? If those total over around $6000, you'll probably save on your 2023 tax return (the one you'll file in 2013) by itemizing. Numbers aren't out yet for 2012, but a rule of thumb might be that for each $4000 the interest and taxes above $6000, add one allowance to be around the same place you are now.

  • htm182111
    Lv 6
    9 years ago

    Here is a link from IRS.GOV, withholding calculator for W-4 not W-2 as you thought:

    http://www.irs.gov/individuals/article/0,,id=96196...

  • How do you think about the answers? You can sign in to vote the answer.
  • tro
    Lv 7
    9 years ago

    there is no place on a W-2 to show your status, or your dependents

    you might be referring to the W-4 and help you go to www.irs.gov. and search for the W-4 Calculator

Still have questions? Get your answers by asking now.