Tax Law (Questions About Taxes)/w4 allowances

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Question
Hi. Every year we have gotten a large refund (about 4-5k), and this year maybe even a drop more since we bought a new house (our first) a year ago November. Also we have 7 under 11.
We're in debt now, so I look forward to the refund, but I'd also like to take more home from my pay. My w4 allowance (or dependents, whatever the right terminology) is 9. My wife works at the same place, and her's is 6.

Although our employer is scratching his head ("9 and a big refund?!), and I heard that after 9 something goes to the IRS to notify them, should I just raise my wife's number to 9, or should I push for getting my dependents up, or am I just stuck?

Answer
Scott,

Thanks for your question.

At one time that was the case, the employer had to send the IRS any W-4 claiming 10 or more withholding allowances, but that requirement no longer holds.  You can raise it to whatever you choose.  Also make sure you are listed as married for withholding purposes as it will hold out less than single.

Hope this helps.

John Stancil, CPA

Tax Law (Questions About Taxes)

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John Stancil, CPA

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I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I am Professor Emeritus at Florida Southern College. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a CPA practice, specializing in tax, for over 35 years. I am a member of the National Association of Tax Professionals, The Florida Insititute of CPA's, The NCPE Fellowship. In addition I am a Certified Mentor for SCORE. Visit my website at www.mybaldcpa.com. I also offer seminars and consultations to churches and clergy on their tax issues at www.churchtaxsolutions.com Also visit my blog, www.thetaxdocspot.com. I am listed on Tax Connections at https://www.taxconnections.com/profile/John-Stancil/12258973 Prepare and file your own taxes at www.1040stancilcpa.com

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I hold a doctorate in Accounting, and am a CPA. My certifications of CIA, CFM, and CMA are inactive. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I have operated a CPA firm for over 37 years and have taught accounting and tax at the college level for over 35 years.

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FICPA, NATP, NCPE Fellowship, Lakeland Business Leaders

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The CPA Journal, Florida CPA Today, Green Consumer, Green Business, Global Sustainability as a Business Imperative, Palmetto Review, NATP TaxPro Quarterly, Mustang Journal of Finance and Accounting.

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DBA University of Memphis MBA University of Georgia BS in Accounting Mars Hill University

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