How do you "break even" with income tax?
So, I'm getting a big fat refund again
I know, I know, gave the gov't a free loan.
I'm trying to figure out what I should do. People say "adjust your exemptions." We are a family of 5, (mom, dad, 3 kids) and both dh and I claim 5. Am I supposed to claim 10 people or something?
I have a p/t retail job, and with claiming 5, they take out 0 in FICA.
My dh gets an annual bonus. which gets taxed 45%
His regular paycheck has 5 exemptions on it.
(Befre you give a sarcastic boo-hoo to the bonus, you should know that his employer pays less than the "going rate" for their employees. engineering firm. They use the EOY bonus to make it
"even" for their employees. Not our preference, but it is what it is, and is otherwise a good company to work for. )
Those things can't be fixed, as far as I can tell.
*We itemize deductions, and get big deductions for property taxes (TX has high property taxes)
*A big deduction in charitable giving (weekly tithe at church + an assortment of other donations, depending on how well I hold onto reciepts)
*Medical deductions, we usually can't claim, but this year had enough to claim and got a $900 deduction
I think I'd be happy if I could "break even" before deductions as some of them change year to year. (medical, charity)
How do I break even in our W2? Like I say, the only thing I can think of is claim a dozen people, but somehow, that doesn't seem right.