Comments on: 13 Tax Lessons, Part 1

By: Matt

Matt — Thu, 16 Mar 2006 10:35:14 +0000

I was under the impression that, legally speaking, it was far better to overwithhold than underwithhold. (In my case, the overwhelming majority of my $8000 refund this year was because of Schedule C losses…which I had no way of predicting precisely in advance, and indeed had the client I spent all that “lost” money wooing actually signed the contract I put in front of them, my Schedule C would have showed a profit. Paying the additional tax required, had that happened, would not have been in any way a hardship for me, but my understanding of the law was that I would still be in a significant amount of hot water for claiming W4 exemptions to which I was not legally entitled, even if I didn’t claim them on my 1040 and was able to make up any underwithheld tax obligations by the time I filed.)

By: fivecentnickel.com

fivecentnickel.com — Sun, 12 Mar 2006 04:35:09 +0000

Weekly Roundup – 03/10/06

Weekly roundup time� Here are some of my favorite posts of the past week from the MoneyBlogNetwork and beyond�

By: Kay Bell

Kay Bell — Thu, 09 Mar 2006 23:17:34 +0000

Glad you found my article (that Yahoo licenses from Bankrate.com) helpful. Unfortunately, Yahoo didn’t pick up the tag line from Bankrate which lists my personal tax blog, Don’t Mess With Taxes (http://dontmesswithtaxes.typepad.com/). I haven’t got around to blogging this article (Bankrate version) yet, but there are other tax tips, info and links there if you’re interested.

By: questions

questions — Thu, 09 Mar 2006 20:25:40 +0000

I think most of your posts are informative and well thought out, but this one doesn’t make much sense. The Yahoo Finance (bankrate.com) article you link to already mentions all of the points in brief and, in the case of number 3, is easier to understand.

If you plan to personally expand on numbers 4 – 13, that’s great. But if you’ll just be reducing an already easy to read article into a few (sometimes confusing) blog entries, you might want to just have an introductory paragraph and a link and call it good.

By: jim

jim — Thu, 09 Mar 2006 19:05:56 +0000

On your W-4 (Employee’s Withholding Allowance Certificate) you specify how many allowances you are claiming. The instructions tell you to enter 1 if no one else can claim you as a dependent, 1 if you’re single with one job (or married but with one income), blah blah. Each one of those allowances is what I meant when I wrote exemption. For each of those, Bankrate says the withholding excludes $3300 from your income.

Ie. if you have a salary of $50,000 and claim two allowances, then the amount of taxes withheld would be the same if if your salary were stated at $50,000 – $6,600 = $43,400 but you claimed zero allowances.

By: Miller

Miller — Thu, 09 Mar 2006 18:48:31 +0000

The $3300 per exemption you mention. Is that $3300 in deductions for calculating AGI or total tax to be paid?