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Originally Posted by capt_slow
Quote:
Originally Posted by Run Silent
OP - there have been at least 2 CPA's that have commented in this thread - I am number 3. Follow our advice over the yahoo's that don't have experience in this matter. Go talk to a proper CPA or at least a tax professional in your area.
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Thanks for all the responses. I'm in the very early stages of the home-buying process. When I move farther along, I'll ask a CPA to help me on this. Definitely not going to mess with my W4 until it has their blessing.
Quote:
Originally Posted by 2000cs
Do you want to owe, but not so much that you incur a penalty for under withholding? That will help the CPA to help you.
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This. I claim 2 allowances (1x for being single, 1x for single income), my Federal tax bill last year was $60 after taking the standard deduction. |
When I brought my house I adjusted my withholding as per the lender I was working with at the time. If you're hit with a large tax bill then adjust the withholding or increase charitable donations prior to April 15 to lower the amount you owe on April 15. You can use a credit card for charitable donations if you don't have cash at the moment and also earn points which aren't taxed. (Though you cant do that for the prior tax year now so maybe contribute for prior tax year IRA instead)