W4 Exemptions

[Bjorn]

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]

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.

[Mo Sheets]

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

[OtisMozzetti]

W4 changed when during the year?

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.

[JohnH]

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.