BigLaw SA: how much is taxed Forum

[NotMyRealName09]

i believe you input start and end date.

Ok yeah then just do that. The IRS knows their numbers.

[HankBashir]

This is gonna make look super stupid but: Where are y'all getting ~30 allowances from? I'm seeing like…2.

[KM2016]

This is gonna make look super stupid but: Where are y'all getting ~30 allowances from? I'm seeing like…2.

Sparknotes version: If you put the standard 1 or 2 allowances, you'll be taxed as if you're making $160k even though you're only making ~$31k. This means you'll be taxed a lot, and get a big fat tax return the following year. So to counteract being overtaxed, you declare ~30 allowances to only be taxed on your actual income ($31k). This means you get more up front and have no tax return.

[hoos89]

Does that take care of the tuition credit too?

[jsmith201]

Does anyone know how to work the system if you are filing a joint return with your spouse? Should I still use the same methods to avoid a huge refund and get more money upfront

[BVest]

Does anyone know how to work the system if you are filing a joint return with your spouse? Should I still use the same methods to avoid a huge refund and get more money upfront

Does your spouse have an income? It's pretty much the same... calculate what you expect your total income to be, do a calculation of taxes, and then adjust WH accordingly. But beware that there are penalties if you don't WH (or estimated voucher) 90% of your income tax due for the year (or 100% of what was due for the previous year -- lesser of the two). If you're concerned, (1) engage an accountant to do your taxes this year, and (2) ask them.

[Mozart Lacrimosa]

Does claiming 10+ exemptions for the summer make it any more likely you'll get audited?

[Desert Fox]

Does claiming 10+ exemptions for the summer make it any more likely you'll get audited?

Less likely because huge returns trigger audits. Like 15% of my law school got audited.

[Mickfromgm]

Does claiming 10+ exemptions for the summer make it any more likely you'll get audited?

I didn't know that IRS did enforcement any more.

[Blackfish]

if you're dumb and enjoy giving an interest free loan to the govt, then claim 0 or 1 allowances and get a fat refund later. but if you're shrewd and know wtf is up you should be claiming a lot of allowances. money now is better than money later. time value of money and all that.

[Anonymous User]

if you're dumb and enjoy giving an interest free loan to the govt, then claim 0 or 1 allowances and get a fat refund later. but if you're shrewd and know wtf is up you should be claiming a lot of allowances. money now is better than money later. time value of money and all that.

What can you ethically claim 10 allowances for if you're single? I kept reading the tax form but found nothing I could add to my lonely "1."

[Anonymous User]

I just claimed 9 since the form said claiming 10+ will trigger IRS flags or some shit.

I only claimed 2 for NY state tax since the form said specifically that they will fine the fuck out of you if you claim extra allowances that would lower taxes initially paid.

[Anonymous User]

I just claimed 9 since the form said claiming 10+ will trigger IRS flags or some shit.

I only claimed 2 for NY state tax since the form said specifically that they will fine the fuck out of you if you claim extra allowances that would lower taxes initially paid.

What categories did you use to to get up to 9?

[BVest]

You don't need categories. The worksheet is just that, a worksheet. All you need to do is put the number on the W-4. It's not binding and not indicative of how many dependents you will claim on your 1040. It means nothing other than to signal to the employer how much withholding you want taken out. If you don't have enough withheld, that's on you and you alone (and you'll have some penalty/interest to pay).

[Mozart Lacrimosa]

Does claiming 10+ exemptions for the summer make it any more likely you'll get audited?

Less likely because huge returns trigger audits. Like 15% of my law school got audited.

Wow this actually makes sense.

[Anonymous User]

Did 30 allowances.. Firm didnt let me do that, said I would be underwithheld. Told them I used the IRS calculcator, and they still didnt agree. So now I have 10 allowances and will be overwitheheld by probably around 5-7k. Thanks