Friday, October 17, 2008

Baby steps...

I have recently re-evaluated my federal tax exemption. When I claimed “6”, I would get a fairly large return in April. I have since changed that for the rest of the year. Did you know you can claim “19”? That’s the max. On the IRS.gov website, there’s an withholding calculator. It’s actually quite interesting.

My plan involves paying down debt for the remainder of the year, and stashing as much as I can get away with. I’m going to then re-evaluate my withholding exemption in January, and again in June. I hadn’t thought of optimizing my exemption until recently.

4 comments:

Loo said...

dats cuzz r tax bitchhh is da shit

Denise said...

excuse me - what language is that previous comment in : )

I'm always nervous to increase ours too much as I don't want to end up having to pay. did you change yours to 19?

Mark said...

I believe Loo’s comment was in Snoop.

I did indeed change my fed. exemption to 19, and as expected, there was no fed. income tax withheld. This should be fine for the rest of this year because according to the IRS tax calculator, I have already withheld enough to cover my 2008 tax. Come the 1st of January, I will be reducing this to ~10.

dmoms said...

wow, we might just have to do that.

contemplating making some changes (leaving my job) so any extra change we can find will be most helpful!