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Did you ajust your W4?

9,632 665 January 26, 2018 at 10:24 AM
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I had things where my refund was very small. Not positive what the new tax law will do, but since I have an idea I just added one more allowance.

Have you changed or will you change yours? If so, what's your plan?

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Quote from uniquename
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I had things where my refund was very small. Not positive what the new tax law will do, but since I have an idea I just added one more allowance.

Have you changed or will you change yours? If so, what's your plan?

I believe as long as you pay 90% of what you owe or 100% of the amount from the prior year you are not subject to a penalty, so it likely is not going to make a difference in that respect for most people outside of maybe floating the gov an interest free loan if the tax savings are more than expected. Still, you should consult with your accountant or make sure your numbers\estimates are matching reality as the year progresses.

That said, if you have significant income outside of your salary, then you should pay what you owe via estimated tax payments quarterly as opposed to trying to futz with your withholding imo. Estimating taxes is always a bit of guesswork, but people should always aim to owe zero come April. Getting a refund is floating the gov an interest free loan. Owing a lot, while potentially making you a little interest in the interim, runs the risk of over doing it and getting hit with a penalty. My 2 cents.
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Quote from YanksIn2009
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I believe as long as you pay 90% of what you owe or 100% of the amount from the prior year you are not subject to a penalty, so it likely is not going to make a difference in that respect for most people outside of maybe floating the gov an interest free loan if the tax savings are more than expected. Still, you should consult with your accountant or make sure your numbers\estimates are matching reality as the year progresses.

That said, if you have significant income outside of your salary, then you should pay what you owe via estimated tax payments quarterly as opposed to trying to futz with your withholding imo. Estimating taxes is always a bit of guesswork, but people should always aim to owe zero come April. Getting a refund is floating the gov an interest free loan. Owing a lot, while potentially making you a little interest in the interim, runs the risk of over doing it and getting hit with a penalty. My 2 cents.
I'm pretty sure I will be close, but will do a check up in June or so. Not worried about paying a little in, just don't want $5k refunds.
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#4
I've given up adjusting our W4's after kids. For the past 3 years we've owed around $2k @ tax time, no penalties and I'm OK with that since I anticipate it.

For these recent tax changes, most of the calculators (I posted a pretty exhaustive list in the Podium) guessed I would come out with ~ $2k less tax liability, so it should be a wash for me anyway. I might have to refile just to maintain current withholding tho, but at least I have my target.
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Last edited by Dr. J January 26, 2018 at 04:16 PM.
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high tax state your taxes might go up
http://edition.cnn.com/2017/12/13...index.html
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