@yourmomma - I like your idea of simply specifying a fixed amount to have withheld from each paycheck. But the current W4 does not allow for that - you have to select a number of exemptions - and like @thumper1 - that has not worked for us. DH and I each took zero this year - resulting in about $16,000 withheld - and my estimate is a bill of $18,000 - so we owe again. I would much rather back into it and just specify a fixed amount to withhold from each of our paychecks. Maybe the new 2018 W4 will allow for that.
W-4 (2017) line 6 is “additional amount, if any, you want withheld from each paycheck.” It is “$___.”
A long time ago, I called HR to have them withhold more. I remember filling out a form indicating an amount. There must be a way to withhold an amount.
Yes, we’ve always been able to withhold additional amounts. Through HR when we were employees and now through QuickBooks Pro since we’re self-employed.
Yes, you can have an additional amount withheld, but only after you pick a number of exemptions. But as far as I know, there is no way for me to say just withhold $300 from every pay.
Couldn’t you just say 0 exemptions and withhold an extra $X?
0 exemptions would withhold a large amount.
To withhold $X, you would have to select an exemption number that results in withholding of $Y < $X (using the withholding tables to figure this out), then put $Z = $X - $Y in W-4 line 6 for additional withholding.
You can claim only 10 or fewer exemptions with no questions asked.
@rockvillemom It’s not part of the W4. You simply go to whomever does your payroll and ask them to withhold a set amount every paycheck.
In our case, we are small business, so an employee will tell the office manager what they want to do. The office manager will call Tina at paychex and say “Jimmy wants to withhold $X for federal taxes each week.” Tina will make the change and presto it’s done. Larger companies may have more red tape, but it’s not rocket science.
@techmom99 - there is a dependent credit of $500 that is viable for all ages above 16. Doesn’t matter if the person is a student or not, since it could be applying to dependent elders. This credit phases out, I believe, for married filing jointly with an AGI of $400,000.
Prepaid my 2018 property tax online tonight. It would be due by 1/31 and just came online within the last few days.
I guess I have to call my mortgage company tomorrow and tell them not to pay from escrow in January?
Look at the definition of “Qualified Business Income” in https://www.congress.gov/115/bills/hr1/BILLS-115hr1enr.xml
quote EXCEPTIONS.—The following investment items shall not be taken into account as a qualified item of income, gain, deduction, or loss:
…
“(iii) Any interest income other than interest income which is properly allocable to a trade or business.
[/quote]
I think to determine which interest income is “allocable to a trade business” you would go these regulations:
https://www.law.cornell.edu/cfr/text/26/1.1411-4
https://www.law.cornell.edu/cfr/text/26/1.1411-5
So I think that it depends on how the LLC gets its “interest” income. Do you mean interest that the LLC is getting from investing its capital? Or is the LLC collecting interest tied to its core business – for example, if in addition to rentals it is also entering installment sales agreements with its clientele, and collecting interest on the notes.
I guess I’ll wait for the new W4 and talk to HR and see what the options are.
@greenwitch - they may want to see proof of pymt. Is the money still in your escrow account? Mortgage servicers make pymts in bulk - so they may have already extracted the funds from each individual escrow account for every loan they service in your county - funds move to a suspense account - and then go out in a lump sum. Hopefully they have not done that yet and the funds are still in your individual escrow account. But you may have to wait for the annual escrow analysis to show an overage in the escrow account as a result to get a refund.
Thanks for the rueful laugh of the day. I don’t think my AGI is going to be $400K any time in my life. I can claim 3 out of 5 kids for this year.
I am waiting to see what my town and county do about the prepayment of taxes since I am in NY and Cuomo just allowed prepaid property taxes to be deductible.
@calmom - have you considered starting a private tax and financial planning practice? I rode in the elevator full of tax lawyers this morning, and jeez they were so merry! 
No, I really am not qualified. All I have done is read the new law and tried to make sense of it. But I don’t know much about tax issues beyond my own direct experience.
Our county is not allowing prepayment of property tax. Boo hiss.
@techmom99 you asked if you can take the child credit for 2 sons living at home but not in school. Remember, 2017 is under the old rules. No child credits for kids 17+, but if they are dependents you still take the exemption.
Is he a qualifying child (probably not since not in college) https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/qualifying-child-rules
Is he a dependent relative? 1) not a Qualifying child (yes, not in college) 2) relationship (yes, your child); 3) Gross Income: did he make less than $4,050 in gross income during 2017; 4) Support: You must have provided more than half of the individual’s total support during the year.
I used to figure out my withholding to be within $100 of the federal return. During the first part of the year it was a guess, but after I could see that, for example, 3 exemption was $500 tax withheld per paycheck, I’d see how much I would owe based on the year before or what I’d make by the end of the year, take the standard deduction, the tax table (usually the year before)figure out the number of pay periods remaining and make the change to the W4.
I’d come close.
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