[DETRoadster]

Heading over to the Off-Topic section of that popular CPA forum to ask about methanol injection on an N55....

OP, as the 3 CPAs have said, the best you can hope for on this forum as a solid take-away is "it depends on your specific situation." Seriously, it's a 10 minute exercise for any tax accountant.

[bimmer456]

Originally Posted by DETRoadster

Heading over to the Off-Topic section of that popular CPA forum to ask about methanol injection on an N55....

OP, as the 3 CPAs have said, the best you can hope for on this forum as a solid take-away is "it depends on your specific situation." Seriously, it's a 10 minute exercise for any tax accountant.

I just use turbo tax CPAs are expensive. They also have live CPAs for a reasonable fee.

[UncleWede]

Originally Posted by Hawkeye

What is wrong about this?

Free federal loan on money HE made?? In my book, that's WRONG, especially since OP is asking about how many deductions to take.


Wait, is this about that darn sarcasm font, AGAIN????

[Run Silent]

Originally Posted by DETRoadster

Heading over to the Off-Topic section of that popular CPA forum to ask about methanol injection on an N55....

OP, as the 3 CPAs have said, the best you can hope for on this forum as a solid take-away is "it depends on your specific situation." Seriously, it's a 10 minute exercise for any tax accountant.

This made me chuckle. I probably laughed harder than I should have. lol.

Originally Posted by bimmer456

I just use turbo tax CPAs are expensive. They also have live CPAs for a reasonable fee.

I know a couple of CPA's who do turbotax work. Just a reminder that the CPA who scored a 75 on all 4 parts of the exam and took 8 years to pass, barely understands normal CR/DR balances for F/S's, and has never heard of the index match function on excel is still called a CPA. Those that work for turbotax are the bottom of the barrel. Use at your own risk.

[chassis]

Originally Posted by capt_slow

I'm in the process of buying my first home and I'm told it's a common practice for people to claim more allowances on their W-4. The idea sounds simple enough, get a larger paycheck and come tax time the mortgage interest and property tax deductions would even out the tax bill.

Has anyone from CA actually done this? If so, mind if I ask how many allowances you put on your W-4? Short of talking to a CPA, the figure I'm crunching out is a whopping 8 allowances!

For reference, my budget is well below the 750k loan cap for the mortgage interest deduction. The property taxes in the area I'm looking at are also below the $10k cap.

Yes, do it. I have done so for nearly 30 years. Work with an accountant to calculate the number of allowances you need to break even with the government on April 15 each year. It avoids Uncle Sam holding your money more than he needs to. You want to hold your money.

State of residence does not matter if the question relates to Federal taxes.

I claimed a significantly higher number of deductions than there were humans in my household. Ignore any raised eyebrows from your HR or payroll departments, just tell them to process the paperwork.

[DETRoadster]

Originally Posted by bimmer456

I just use turbo tax CPAs are expensive. They also have live CPAs for a reasonable fee.

My taxes are a bit too complex for turbo tax, but back when they were simple I sure used it. I miss those days!

[Run Silent]

Originally Posted by DETRoadster

My taxes are a bit too complex for turbo tax, but back when they were simple I sure used it. I miss those days!

Turbotax to do your taxes?

Turbotax CPA consults?

[bimmer456]

I just use turbo tax and they have all my past returns. Beyond my house I have investments in stock which my broker takes care of the tax forms for and the data just transfers to turbo tax. I have almost no paper work and my taxes aren't that straightforward. Haven't had to use the CPA service this far.

[RickFLM4]

Can’t you rough out your expected tax bill using tax tables and the use that info to try to get your deductions close enough to cover your high estimate (like everyone who has to make estimated payments)? That’s a middle ground between asking people here and paying for a CPA, who will basically (hopefully) do the same thing.

[capt_slow]

Interestingly, there is a new W-4 for 2020 that does away with the allowances of old.

https://www.irs.gov/pub/irs-pdf/fw4.pdf

[c1pher]

Just another perspective:
https://www.forbes.com/sites/baldwin.../#287a49497160

[wdb]

Originally Posted by c1pher

Just another perspective:
https://www.forbes.com/sites/baldwin.../#287a49497160

Interesting piece. I'm not surprised. Glad I have all of that stuff behind me.

Originally Posted by RickFLM4

That’s a middle ground between asking people here and paying for a CPA, who will basically (hopefully) do the same thing.

The best middle ground is to pay ~$20 for H&R Block, Turbo Tax, etc. software and run through the whole program yourself first. This will take into account more than just mortgage deductions, etc. and give you a better picture as to where you'll likely end up come April given an array of different variables.

Of course a great CPA is invaluable, as is a great mechanic; but at the end of the day I'll always choose to have a good understanding on practical topics FIRST before just carelessly handing off my problem to an "expert"...nothing wrong with educating yourself on a subject that will obviously require at least some critical thinking on more than one occasion in the future as well.

What's the worst that could happen...you learn something new? lulz

[RickFLM4]

Originally Posted by FCobra94

The best middle ground is to pay ~$20 for H&R Block, Turbo Tax, etc. software and run through the whole program yourself first. This will take into account more than just mortgage deductions, etc. and give you a better picture as to where you'll likely end up come April given an array of different variables.

Of course a great CPA is invaluable, as is a great mechanic; but at the end of the day I'll always choose to have a good understanding on practical topics FIRST before just carelessly handing off my problem to an "expert"...nothing wrong with educating yourself on a subject that will obviously require at least some critical thinking on more than one occasion in the future as well.

What's the worst that could happen...you learn something new? lulz

You should be able to do the same thing in Excel, perhaps by referencing an IRS tax publication or two (which are actually pretty well written). But yeah, same concept - it can be figured out.

[tdott]

I only pay about 8k in Mortgage interest, 7k in property taxes.

I can't find more than 25.1k deductions (married filing jointly) so standard deduction it was for me.

Paid more under new tax changes than I did before.

[chassis]

Originally Posted by capt_slow

I'm in the process of buying my first home and I'm told it's a common practice for people to claim more allowances on their W-4. The idea sounds simple enough, get a larger paycheck and come tax time the mortgage interest and property tax deductions would even out the tax bill.

Has anyone from CA actually done this? If so, mind if I ask how many allowances you put on your W-4? Short of talking to a CPA, the figure I'm crunching out is a whopping 8 allowances!

For reference, my budget is well below the 750k loan cap for the mortgage interest deduction. The property taxes in the area I'm looking at are also below the $10k cap.

capt_slow Yes, do this. Reduce your Federal withholding. State (CA) does not matter.

It’s better for you to have your money than for the govt to make money on your money, aka the “float”. You should make money on your money. Plus you need the cash to pay the mortgage.

Do what you want. It gets squared up at tax return time.

[RickFLM4]

Hopefully OP figured this out already long ago.