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Tax question. I moved my allowances from 1 to 9 this past month which added money to my paycheck.?

Asked by: 172 views Finance - Taxes

1. I have already paid in the amount that is due for 2011.
2. I was recently married.

There for this next month my paycheck will help me catch up on some bills.

If I left it and kept using the extra $ from my paycheck to pay off bills, for the next 6 months,
and then switch back to where enough taxes are taken out for the remainder of the year, would that be a bad idea?

9 Answers



  1. Ada Ava on Dec 13, 2011 reply

    ——————
    you said: 2. I was recently married.
    …………….

    I know, I am your husband

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  2. Jak on Dec 13, 2011 reply

    Well it depends on who you ask. I have done this multiple times and it all worked out and I still received a descent return. You just need to remember to change it back.

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  3. Bostonian In MO on Dec 13, 2011 reply

    Nowhere near enough information to give you an intelligent answer. Need ALL of your tax information (income, withholding, dependents, etc.) in order to properly advise you. Since you are married this includes your spouse’s information as well.

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  4. mrreliable3599 on Dec 13, 2011 reply

    You’re on exactly the right track wanting to keep your money in your pocket instead of sending a bunch of extra money to the government then getting it back a year later.

    The only trouble with your scenario is under-withholding for half the year then catching up is a recipe for trouble.

    You’ll get accustomed to the bigger paycheck, then when it’s time to switch back, there will be pressure to keep your paychecks coming and put off the inevitable. In other words, kicking the can down the road like Congress does, then all of a sudden you have a financial catastrophe on your hands.

    Why not figure what you’ll owe in tax and set your withholding to cover it now? Then you won’t have to worry about it. If figure my withholding so I’ll owe just a bit to the government. You can figure it so you’ll get a bit back, that’s fine. Just don’t use withholding as a forced savings plan.

    If you do underwithhold early in the year, then overwithhold toward the end, that won’t cause any problems as long as you end up with your tax covered. Withholding from a W2 is considered to have been paid evenly through the year no matter when it’s withheld (unless you annualize).

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  5. Bobbie on Dec 13, 2011 reply

    For the 2012 tax year and being married and both taxpayers earning income claiming 9 ALLOWANCES on your W-4 withholding allowance certificate is NOT a very smart thing to be doing and when you claim MORE allowances than you qualify for at that time is illegal to do at that time in your life.
    So you and your husband both really do need to work on this matter together to try and make sure that you do not end up NOT having enough federal income tax withheld to cover your possible FIT liability for the 2012 tax year when you fill it out during the 2013 tax filing season for that purpose and time in your life.
    Use the search box at the http://www.irs.gov website for the IRS Withholding Calculator
    Each one of you should use this and you both should work together and coordinate how each one will fill out your W-4 form for the 2012 tax year for this purpose.

    http://www.irs.gov/individuals/article/0,,id=96196,00.html

    If you are an employee, the Withholding Calculator can help you determine whether you need to give your employer a new Form W-4, Employee’s Withholding Allowance Certificate to avoid having too much or too little Federal income tax withheld from your pay. You can use your results from the calculator to help fill out the form.
    Who Can Benefit From The Withholding Calculator?
    Employees who would like to change their withholding to reduce their tax refund or their balance due;
    Employees whose situations are only approximated by the worksheets on the paper W-4 (e.g., anyone with concurrent jobs, or couples in which both are employed; those entitled to file as Head of Household; and those with several children eligible for the Child Tax Credit);
    Employees with non-wage income in excess of their adjustments and deductions, who would prefer to have tax on that income withheld from their paychecks rather than make periodic separate payments through the estimated tax procedures.
    Has not been updated yet for the 2012 tax year.
    Hope that you find the above enclosed information useful. 12/13/2011

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  6. GameHound1212 on Dec 13, 2011 reply

    Claiming more allowances on a W-4 than you really have is illegal.

    Plus your under-withholding could easily result in a gross underpayment of taxes. If you owe more than $ 1,000 in additional taxes, you might be charged extra penalties.

    You want more money but you might end up with less.

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  7. tro on Dec 13, 2011 reply

    any time you have a change in the information on the W-4 you need to submit a new one, even if it is just your change of address

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  8. the kid on Dec 13, 2011 reply

    Yes, it would, as next year you could easily owe.

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  9. a tax lady on Dec 13, 2011 reply

    In practical terms, if you leave the allowances at 9, then either change it back or not, but owe more than $ 1000 at the end of the year, 2 things happen.

    1. You owe the estimated tax penalty. Nominally, that’s 8% of the amount owed, but due to weighted averages, closer to 4% on the forms.

    2. If you owe a huge amount and the IRS notices that you did this yourself by playing games with the W-4, they can send a lock-in letter to your employer informing them that from now on it’s say, married/1.

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