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From: king@kestrel.ARPA (Dick King)
Newsgroups: net.taxes
Subject: Re: Increasing deductions because of a mortgage
Message-ID: <5319@kestrel.ARPA>
Date: Sun, 2-Mar-86 14:56:18 EST
Article-I.D.: kestrel.5319
Posted: Sun Mar  2 14:56:18 1986
Date-Received: Tue, 4-Mar-86 04:25:33 EST
Organization: Kestrel Institute, Palo Alto, CA
Lines: 35


   From: szyld@duke.UUCP (Daniel B. Szyld)
   Newsgroups: net.taxes
   Date: 28 Feb 86 14:11:39 GMT
   Reply-To: szyld@duke.UUCP (Daniel B. Szyld)
   Distribution: net

   Regarding increased excemptions to avoid a large refund...

   Simply file a new W-4 with your employer. The form has instructions which 
   are easy to follow. Essentially you estimate your deductions and the form
   gives a formula for the number of exceptions to claim. There is absolutely
   no relationship between that and the excemptions to be claimed in your 1040.
   The only detail to have in mind is not to own too much, and thus avoid a
   penalty. Another warning: After 10 exceptions, there is no difference in the
   witholding (I think) AND the IRS flags you in case you are a tax protestor.
   -- 

   Daniel B. Szyld, Dept.of Computer Science, Duke University, 
   Durham NC 27706-2591. Phone (919)684-3048. Telex 802829 DUKTELCOM DURM
   CSNET: szyld@duke        UUCP: {ihnp4!decvax}!duke!szyld
   ARPA: szyld%duke@csnet-relay  or na.szyld@su-score 

There is no threshold above which the effect of claiming additional
exemptions vanishes (except, of course, when no income is withheld).

Copies of W4 forms claiming more than 14 (not 10) exemptions are sent
to the IRS, but it doesn't seem to do any damage.  They probably WILL
get on your case, however, if you end up owing them substantial money.

You are never in trouble if either 1> you have withheld at least 80%
of your taxes, or 2> you have withheld at least as much as you owed
last year.


-dick