TAX TIP OF THE DAY... adjust your withholding at work
Use form W-4 to increase or decrease your Federal withholding at work. Unfortunately the form instructions and worksheets are WORTHLESS!
1) Ignore IRS instructions on the form.
2) Do not complete the top 1/2 of the page. Start 1/2 way down the page at your name. Ignore page 2.
3) For less withholding use a higher number such as 3 or above.
4) For more withholding, choose a lower number of allowances such as zero or 1. For more withholding choose Single even if you are married. (3rd box says... "Married but withhold at the higher single rate")
5) The highest rate of withholding is Single with zero allowances
6) You can override the IRS withholding tables by using box 7... "additional amount withheld from each paycheck". Your employer would withhold your chosen setting plus the additional amount requested.
7) never use box 7 "exempt"
IS THERE A SIMPLER WAY?
YES, have your tax preparer sugggest a withholding level for you.
SHARE WITH A FRIEND.
If you need a tax appointment... www.baboiancpa.com