Please critique my Schedule J and overall CH7 plan...(Three person household)

[Diesel73L]

From what I undertstand (and if I'm wrong, I hope someone smarter than me will chime in lol) but if you over withhold, they can use the amount that is overwithheld as DMI. For example if you have $1000 taken from your check monthly for taxes, but you actual tax liability is $600, then they will use that $400 difference as DMI...at least that is how I understand it....

Thanks for raising that-if anyone else has more expertise on the subject I'm all ears. So this really applies to the Schedule I and J then, correct? As an example, right now our DMI based on our projected expenses and salaries with current tax withholding works out to -$182. My federal withholding is about $400/mo and state is around $70/mo the rest is SS/Medicare. Let's say that my tax liability is only really $200, so if your understanding is correct, that would add $200 to the DMI, which would still work out to $18. By the time we file my wife's withholding won't be an issue because she'll be on unemployment. In fact, if she's on unemployment for a full tax year we'll be lucky if we don't owe since federal and state taxes are not withheld at all from unemployment. If someone could verify this it would be greatly appreciated.

BTW your situation is very similar to my wife and I's....best of luck to you

Thanks, and good luck to you as well.

[daylate]

I'm pretty sure that your dmi is based on your actual tax liability divided by 12 not your withholdings. Otherwise people would jack their withholdings to qualify.

[Diesel73L]

I'm pretty sure that your dmi is based on your actual tax liability divided by 12 not your withholdings. Otherwise people would jack their withholdings to qualify.

On the Schedule J it simply asks for how much is withheld from your check-the NOLO book states just to give this information from the paystub along with Medicare/SS.

[DirkDiggler]

If you can still qualify for 7 using your actual tax liability, I would use that amount. You don't want to have anything that they can use to look into your filing any further and try and push you into a 13. Now I'm not too sure about if you actually have to change your withholding, or just use the smaller amount....I'm still learning all about this process too!