Tax question!

[3girlsmommy]

Dh & I have been talking. Each year we get a large tax return and while it is nice to get that big chumk of money all at once I think I would rather keep it instead of giving it to the govenment as an interest free loan. How do we go about do that? I know you have to change some numbers on your w2 but what do you change it to? Are there any downsides ro doing it this way? What do you all think???

[sweetfeet]

We do this and get back an extra $100 a month. We still get a small refund as well. You go to the HR dept and fill out a new form. You'll up the exemptions. An exemption space marked 0 will take out the most taxes, therefore having more exemptions lowers your federal tax withheld. We are a family of 3 and have 3-4 marked for exemptions. HTH HR at my dh's work was very helpful with his tax questions.

[3girlsmommy]

Thanks! I've been urging him to call our tax guy and talk to him aobut it. If we took our tax return and divided out over 13 months it would be a HUGE help month to month. I don't know why it has taken me so long to realize that we could be getting this money back a heck of a lot sooner! I guess 3 kids later our tax info is different!

[Mama Dragon]

My DH makes just the right amount, high enough to pay our bills, but low enough we have no tax liability and a ton back on earned income credit. His w2 shows 5 exemptions (himself, me, and our 3 kids) and lists "Exempt" at the bottom where it asks if you expect to owe federal taxes. So he pays nothing during the year to the feds. And I can't say I mind a bit

[mightymoo]

I know turbotax will help you calculate what to put on your W-2, if you used them to do your taxes you can use their tool - you might see if you can use it anyway. I think hrblock.com might also have something similar.