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Old 02-06-2014, 10:50 AM   #1
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Random tax question

So I'm 25 single no house or kids I am starting a new job making 50k a year I don't care about money back at the end of the year just need more in pocket to afford mortgage . So what do you guys claim for withholdings
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Old 02-06-2014, 11:16 AM   #2
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Personally, I like getting some money back during tax time. Holidays wipe me out. Yes, you are letting the gov make interest on your money, but if you claim 2 and keep the money, they have to pay at tax time, you never think about how you were getting more money paycheck to paycheck. You just naturally are pissed you owe.

So while I can afford it , I claim 0 so I get a big chunk of change back.

Claim 1 to typically be even (+\- a little bit)
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Old 02-06-2014, 11:27 AM   #3
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Quote:
Originally Posted by Moto111 View Post
So I'm 25 single no house or kids I am starting a new job making 50k a year I don't care about money back at the end of the year just need more in pocket to afford mortgage . So what do you guys claim for withholdings
Your Single, No House or Kids. So why do you Need more in your pocket to afford a mortgage when you said you DON'T HAVE A HOUSE? Are you plan on buying one?
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Old 02-06-2014, 11:36 AM   #4
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Plan on buying this year my checks are base pay 1900 take home is only 1400 which sucks
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Old 02-06-2014, 11:50 AM   #5
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There are some sites like this one, and probably others that can help you figure out your exemptions:

Adjusting Tax Withholding - How to Figure out How Many Withholding Allowances to Claim

The earlier in the year that you get into a house, the larger your interest and potentially property tax deductions will be.
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Old 02-06-2014, 08:35 PM   #6
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Plan on buying this year my checks are base pay 1900 take home is only 1400 which sucks
Right Now, you don't even look at qualifying for a house. What are your expenses per month?

Down Payment?

Base pay, you in the military?

Better to live on the base and save your money for awhile.
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Old 02-06-2014, 09:21 PM   #7
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Qualify I make 50k a yr lol I'm a federal cop and I already have 20k saved so just waiting for right time to buy lol
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Old 02-06-2014, 09:41 PM   #8
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Quote:
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So I'm 25 single no house or kids I am starting a new job making 50k a year I don't care about money back at the end of the year just need more in pocket to afford mortgage . So what do you guys claim for withholdings
Based on your current standard deductions and exemptions, you'll be in the 15% Federal tax bracket with around $40k in taxable income. Even more if you have any investment income. This isn't counting whatever state taxes you'll have.

I'm an Accountant. A little bit of free advice for you, and I mean this in the most respectful way, but if you, as a single person, need the cash that is the difference between 1 or 2 exemptions on your W4, you cannot safely afford a house. The tax breaks for interest and taxes aren't that fabulous for a single-family dwelling.
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Old 02-06-2014, 10:20 PM   #9
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Buying a house is over rated anyways. I personally would rather rent and let someone else worry about all the BS and repairs. We are looking to make around 26K when we sell ours and we really don't want to buy another but........sigh......we will. We actually want something smaller because we just don't use the space we have now. Garage size is a major factor for me so as long as the garage is good...i'm good.
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Old 02-06-2014, 11:30 PM   #10
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Taxes suck. All the new tax laws are stupid. Get thrown in another tax bracket bc you make over à sertain amount so you have to pay in more.

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---------- Post added at 11:30 PM ---------- Previous post was at 11:30 PM ----------

Buying à house is over rated also lol.

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Old 02-07-2014, 05:49 AM   #11
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I'd dislike making someone else have the tax write off by renting. I prefer to own. If you dislike yard work, consider a condo, or hire someone to do the lawn maintenance. Owning property is one of the best (anf few) tax write-offs you can have these days.

Consider starting a small business on the side. It can be something as simple as a travel agent, car agent, or other. You would be allowed to use a portion of the house/apartment as your work space, and can deduct certain travel as a business expense as it relates to your side line business. If your car is used to say, meet with a client, you can deduct mileage/wear/tear. There are many folks that do this today, and many sites are out there online that would sponser you. Some host a web site for you (with a small monthly fee; this too is tax deductible as a business expense).

You don't need a business front/property to start your own side line business.

Unfortunately for you, being young, not owning a home to deduct for taxes, and making 50K puts you into a nice tax bracket. Welcome to being an adult!

For me, folks like you are a blessing, as your contributions in tax keep me optimistic that I'll be able to collect my social security when it comes time (not too far away)!
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Old 02-07-2014, 10:10 AM   #12
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We'll thankful for me I'm not trying to buy a house for 150k and up . lol I found some nice duplexs and townhome for 100-110k which puts a mortgage at 800 a month which is fine as I save about 1300 a month . Renting is like 1600 a month for a townhome and I have a dog so it's harder as well
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Old 02-07-2014, 10:12 AM   #13
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And I'm a simple cop no desire for side business or anything still in school just ready to make the next step and judging by my math and what I have saved it will be fine . Even will have a room mate which will make it easier . Need to get out of parents . Getting out of military was really tough
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Old 02-07-2014, 10:26 AM   #14
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Quote:
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We'll thankful for me I'm not trying to buy a house for 150k and up . lol I found some nice duplexs and townhome for 100-110k which puts a mortgage at 800 a month which is fine as I save about 1300 a month . Renting is like 1600 a month for a townhome and I have a dog so it's harder as well
If you're able to save that kind of money every month, you may be in good shape after all. Just look into the property taxes, and all associated costs before you take the plunge. And remember, taxes will always go up based on property values. I know you want to be free, just be cautious, and make sure any potential home you buy has a furnace/AC/water heater less than 10 years old, and good appliances. Those costs can get heavy and are usually unexpected.

You should be able to safely claim 2 exemptions on your W4, and try to maximize your pre-tax contributions to retirement plans as they will reduce your taxable income. If you have any more questions, don't hesitate to send a PM.
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Old 02-07-2014, 04:06 PM   #15
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Qualify I make 50k a yr lol I'm a federal cop and I already have 20k saved so just waiting for right time to buy lol
WOW! A Federal Cop. Must be one of them high paying GS-7s. Can you say TSA all in the same breath?
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Old 02-07-2014, 04:31 PM   #16
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Haha funny not tsa but thanks buddy thanks for the help and claiming anything won't make or break me just like a cushion every month .
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Old 02-09-2014, 09:50 AM   #17
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Random tax question

Think ahead about retirement. Buy a house, pay it off over the years, retire with no mortgage or rent. Renting as a retiree on a fixed income leaves you no control over your monthly housing costs.


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