Yeah, the IRS has a withholding calculator and I Recommend it to people all the time. It is a lot easier than figuring out a W-4 schedule.

BUT I had been thinking I should probably get 14 exemptions and I was thinking of pushing 16 on my W-4 this year. I always get a big state refund ($1500 or so) and I figure easier just to claim more fed exemptions, pay the balance with my state refund on April 15th. Plus I know all the tax laws and can monitor it to make sure I don't hit the penalty for underwithholding, which I wouldn't at 2 measly exemptions at 15%. Means I may be underwithheld $1k, but there is no penalty for being under $1k or less due at April 15. & state refund will no doubt be more than what I owe.

Anyway, I went to IRS Calculator to see where I was at and it said 12. My own calcs as I already said were 14. I thought maybe I Should just leave it 14. But I did my tax return (a draft anyway) and did some planning for 2007 and still came up with 14. The IRS I have concluded is CONSERVATIVE. They want your money. So just know that - LOL.

They say 12, I claim 16 - take that. 14 would be pretty break-even, a small refund. So 16 just kind of keeps me under penalty and I rather earn interest all year...

My boss always gives me the eye when we are talking about exemptions in seminar - it cracks me up. 4 personal exemptions, $20k easy in state taxes and mortgage, health insurance galore (some of it deductible) and the child tax credit for 2 kids, plus only 1-income, makes a lot of exemptions. No one around here is claiming so many exemptions because they either have a 2nd income or they rely on big refund checks. I Swear I haven't hardly owed a penny on April 15th in years. But it is funny, 16 is the highest yet, he is probably wondering about me. This is the most I every have pushed it. But I will keep an eye on it. If I get a raise I may move it to 15, or lower it later in the year as I monitor it.

I calculate I may be able to squeeze another $40-$50/month with this increase AND our state disability rate actually just went down. Will save me $11/month. & wala, I have my new health insurance premiums covered with or without a raise.

Still praying for a big raise to make my savings goals easier this year. Waiting waiting waiting, couple of more weeks. But is nice to know I am in budget regardless.

ETA: I forgot to mention I get a decent bonus in May where way too much is withheld which is also why I feel comfortable under-withholding a tad. It makes up for that measly bonus I get once 40% is taken out - blah. LOL. I usually keep 90% of my checks and have a right to 90% of that one so it just annoys me to no ends, this is how I battle it... I swear I will probably get a small federal refund for 2007 if I count that.