W4s and the Number of Dependants

[shane2943]

Hello again everyone!

Got a question about W4s. The wife and I want to adjust our withholdings so that less is being taken out of each check and we receive a very small tax return or none at all. We don't want to owe if possible. I've heard on Dave Ramsey's show that this is done by adding claimed dependants. My question is: is there a formula or guide to how many dependants to claim without having to owe in April? We're ok with continuing to receive a tax return if it's a small one. We just want more of our money each check.

On one Dave Ramsey show, he said that one of his employees had to claim something like 9 dependants to get his withholdings low enough! O_O

Thanks in advance!!!

[JoJoBean8]

If you go onto the Turbo Tax website there is a link and it will take you to the IRS website which has a calculator and you plug in all your info and your wife's info and it will tell you how much to withhold and how much you will get back in a refund.

[shane2943]

Cool! So I can use that and enter a hypothetical number of dependants to find a winning formula?

[JoJoBean8]

Well if you go in and put your wife's gross income and your gross income and it will go through and ask about other deductions it will actually tell you what your with holdings should be to receive the smallest tax refund.

[mombottoo]

There is usually a worksheet at the top of W-4's to help you figure out the # of dependants to claim. I know that if one spouse is employed the working spouse can take an extra 1-2 deductions with no problem.

[Telephus44]

I believe you can also specify a dollar amount in addition to just guessing the number of dependents - my check is M-2 plus an additional $185.

[ilovechocolate]

www.kiplinger.com (I think that's what the site is) also has a calculator you can use by putting in your last year's income tax info. It's very quick and easy.