W4 Exemptions

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  • Bjorn
    Senior Member
    • Jun 2005
    • 185

    #1

    W4 Exemptions

    Is there a general rule of thumb where if you change your exempions by one your refund will go up or down by a certain amount?
    Mahalo
  • JohnH
    Senior Member
    • Apr 2007
    • 5339

    #2
    I'd use $3,500 multiplied by the taxpayer's marginal tax rate, assuming their AGI isn't high enough that personal exemption limitations come into play.
    "The only function of economic forecasting is to make astrology look respectful" - John Kenneth Galbraith

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    • Mo Sheets
      Senior Member
      • Jan 2009
      • 170

      #3
      IRS Withholding Calculator

      I've recommended the 2009 IRS Withholding Calculator to most of my clients. They can insert information from their most current pay stubs and it walks them through a variety of easy questions. It allows them to see what they might owe or get back based upon their current withholding.

      They can go to www.irs.gov and type in "2009 Withholding Calculator"

      Hope this helps!

      Mo

      Comment

      • OtisMozzetti
        Senior Member
        • Dec 2007
        • 530

        #4
        W4 changed when during the year?

        Originally posted by JohnH
        I'd use $3,500 multiplied by the taxpayer's marginal tax rate, assuming their AGI isn't high enough that personal exemption limitations come into play.
        It depends whether the W-4 is changed Jan. 1, or implemented by the employer at some date later during the year.

        Comment

        • JohnH
          Senior Member
          • Apr 2007
          • 5339

          #5
          Good point. So if the change is made during the year, just take my calculation and multiply by the ordinal date, then divide by 365. This will yield the result for the current year.
          "The only function of economic forecasting is to make astrology look respectful" - John Kenneth Galbraith

          Comment

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