Did you change your withholding when you bought your first home?

[Gunslinger08]

First time homebuyer here. I know that the tax benefits of owning a home are pretty big in the first few years of your mortgage. Did you change your withholding? If so, how big of a difference in net income did you see per month?

 

[EagleKeeper]

W4 withholding impacts vary based on income.

 

[Dirigible]

Originally posted by: EagleKeeper
W4 withholding impacts vary based on income.

Yup. So any answer to your last question, OP, will not shed light on your individual situation.

In answer to your first question, yes, I changed my withholding. You should run the numbers to see if you can too. Don't give Uncle Sam a loan.

 

[Capt Caveman]

I believe I went from a 1 to 2 to eventually a 3 which I believe netted me a couple of hundred dollars a month instead of getting a huge refund at the end of the year.

 

[Gunslinger08]

Originally posted by: EagleKeeper
W4 withholding impacts vary based on income.

I realize that. I'm just asking for general info.

 

[EagleKeeper]

Best way is to look at every exemption is about 3K worth of taxable income.

Look at your tax rate last year and multiply that by $3K to get an estimate in take home savings.

 

[boomerang]

The best way to do it I've found is to re-figure last years tax return using today's numbers. It should be close enough to get you in the ballpark.

Our home is paid for, so it's too far back to give you any specific information.

Yes, I changed my withholding, I don't remember the numbers and they are too old to be relevant.

Are you trying to compare your numbers to others or are you wanting to know what other people's numbers are? The general answers you've gotten thus far about cover it.

 

[alkemyst]

Originally posted by: Dirigible

Originally posted by: EagleKeeper
W4 withholding impacts vary based on income.

Yup. So any answer to your last question, OP, will not shed light on your individual situation.

In answer to your first question, yes, I changed my withholding. You should run the numbers to see if you can too. Don't give Uncle Sam a loan.

Most will get more burned on underpayment penalties than any true savings of 'giving uncle sam' a loan.

This matters when you are beyond middle class though, IF you invest that difference.

I usually pay out a grand or so lately...I just bought a house a year ago so I should get back a little. I didn't change my W4 either way.

 

[Scarpozzi]

No....but my tax return isn't usually significant enough to matter....it's usually under a grand the way I have things setup now.

 

[HardcoreRobot]

i didnt but i should