The Small Business Tax Help Blog

Posts Tagged ‘tax withholding calculator mortgage interest’

Question: First time home buyer: how to get interest payments back monthly instead of once a year?

Hello:

Just about to buy my first home which is very exciting!
Since I’ll be be paying close to $3,000 in interest/$1,000 in real estate taxes a month and I would like to keep my monthly income as high as possible I would like to tweak the W-4 withholding allowance so less taxes are being withheld. There are a number of calculators on the internet, but none of them seem to be applicable specially for mortgage interest (and real estate taxes).

How can I go about this?

Thanks!

Answer: see your personal director where you work and fill out a new W-4 withholding form. There is a worksheet to help you figure out how much to withhold.

If I remember, each one is worth $25 less withheld and you can claim up to 99. However, remember, if you underestimate your Tax Withholding, the IRS can fine you.

Questions and Answers – 23 June 2010

Budget 2010—Grant to Pacific Economic Development Agency; Rest Homes—Standard of Care; Economic Position—Current Account Deficit; State-owned Enterprises—Requests for Additional Capital