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Question


Romare

How much can I increase my payroll deductions?

I have made an offer on a condo for my very first home purchase. I have always heard people say that you can increase your payroll deductions to get more in your paycheck because of the interest write-off. But how do I determine how much to raise it to without running the risk of having to pay income tax at the end of the year?

4 months ago - 5 answers

Best Answer

Chosen by Asker

You need to figure how much tax you may owe at the end of the year. Then, if you're paid weekly for example, take the total tax and divide it by 52 to see how much should be withheld every week. That should give you a ball park figure as to how much tax you'll owe. It's better to have more withholding taken out than to owe tax at the end of the year.

by Terence B

4 months ago

Asker's Rating: 

Other Answers

Tell payroll to up your exemptions to 2 or 3 for the rest of the year. Depending if your married/have kids you could probably go higher than that.

by Eric S- 4 months ago

You can request a W-4 form from y our payroll office and the form has a "deduction worksheet" on it. Other than that, I would call a local HR Block.

by Kim G- 4 months ago

I would advise you to watch the documentary America:Freedom to Fascism by the late, great Aaron Russo. Then Read a book called Cracking the Code, by Peter Eric Hendrickson. *sm*

by LadyZania- 4 months ago

Who does your taxes? If you have an accountant they should be familiar with your situation and be able to tell you this. I am in the process of buying and will be asking my accountant this exact question.

by Just say no!- 4 months ago