More than 9 exemptions on withholdings???

[becky20]

I just did the IRS Withholding calculator and it recommended married with 10 for mine and husband's withholdings for our paychecks (1099??) I thought someone here posted not to claim more than 9 because of additional scruitiny? The calculator told me to reevaluate my withholdings in 2009 - only reason to put 10 now is because we've already paid more in taxes up to this point than we need to and even with 10 we'll still get a refund due to overpayment but I'm trying to make that refund as little as possible since chances are we won't get it anyway... So next year we'll adjust and my guess is it'll be more like 4 or 5...


So the question is, should we claim 9 to be safe and not cause add'l scruitiny? Is claiming 10 really going to open us up for audits or whatever?

[magyar123]

Claiming 10 or more exemptions (or completely exempt from withholding) will trigger the employer having to send a copy of the W4 to the IRS.
If both of you are employed you can always take 9, and your husband 9.

[fltoo]

I am confused as to your question. Are you an independent contractor getting a 1099 or are you salaried?

The exemption form is only filled out if you are salaried and you are entitled to as many as you qualify for. Roughly, 10 is equal to about $30,000 worth of deductions.

If you do get 1099's, your accountant should give you estimated quarterly tax payments. If you do the taxes yourself, find out the percentage of your AGI that you paid in taxes and use that percentage with this year's income minus $30,000 of deductions.

Oh my, did I now confuse you?

[RK05]

Becky, I don't know the answer to your question but I have one for you. When are you planning on changing your exemption? Before or after you file for BK? The resaon I ask is because my girlfriend was thinking about doing the same thing.

Thanks

[fltoo]

Claiming 10 or more exemptions (or completely exempt from withholding) will trigger the employer having to send a copy of the W4 to the IRS.
If both of you are employed you can always take 9, and your husband 9.

This is NOT true.

As always, check out info you get on a forum before you do anything. Most of us have no idea what we are talking about.

But, seriously, this was rescinded in 2005.

[laurannm]

Claiming 10 or more exemptions (or completely exempt from withholding) will trigger the employer having to send a copy of the W4 to the IRS.
If both of you are employed you can always take 9, and your husband 9.

This is no longer correct. It used to be 10 but a few years ago it was changed. I just recently upped my exemptions to 13, which according to my HR department is the max. Anything higher and the IRS has to be notified

[becky20]

So here's the whole story, for those who asked for more info. Both dh and I are employed (not self-employed). We filed Ch 13 on 7/11, had our 341 about 2 weeks ago. I was told by my atty that we should change our withholdings after our 341. Last year we got 6K back from our taxes, the year before about the same (we were both claiming single with 0. But since the trustee would take our refund, better to put the $ in our pocket. So, I'm now trying to decide what to change our deduction to. We only have 1 child. I did the withholdings calculator that the IRS has and they said to claim 10 for both dh and myself, which would result in no taxes taken out. Apparently we've already paid more into the IRS then we should so we'll still end up giving a refund to the trustee, just hopefully much smaller than in previous years.

So can I claim 9 (or 10) without filling out the worksheet that accompanies the form (w4?)?

We'll obviously have to reevaluate our withholdings in January and I'm thinking at that time it'll end up being changed to 4 or so...

[magyar123]

This is no longer correct. It used to be 10 but a few years ago it was changed. I just recently upped my exemptions to 13, which according to my HR department is the max. Anything higher and the IRS has to be notified

Could be by now - I used to work in payroll in the early 1990s.

[HHM]

If the calculator said you can claim 10, then claim 10.

I doubt the difference between 9 or 10 would matter very much. You just want to be careful that you won't OWE taxes by making the change.

[becky20]

If the calculator said you can claim 10, then claim 10.

I doubt the difference between 9 or 10 would matter very much. You just want to be careful that you won't OWE taxes by making the change.

Yeah, my question is more as to whether claiming 10 (as opposed to 9) will prompt any add'l questions or issues. If it will, I'll claim 9 to be safe, but if it won't (if the previous person was correct that 13 is the magic "flag" number) then I'll claim 10...

[justbroke]

Prior to filing my BK, mine was set at 25 -- just me!!! Now, I had to change it to 15. The automated W-4 I completed stated that the IRS would be notified and may not approve of the number. (Well, I'm going from 25 to 15 so I don't think it's a problem.) I had a boss once who had hers at 99.

[dizyblond]

Thanks for the info! I needed this too!

[becky20]

SERIOUSLY, 99?! That's insane!!! So 25, 15, 99, so I'm guessing with 10 I'd still be safe from IRS flagging me? I'll send the form in tomorrow. Thanks!!!