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Max Number of W-4 Allowances
What is the maximum number of allowances someone can take on their W-4? I've read articles that pretty much say between 0 and 4 depending on filing status, children, other jobs, etc. After completing a worksheet at one of the big tax sites, it was suggested I claim 10. Needless to say, I have too much withheld each year and end up getting a sizeable refund. I also have a lot of itemized deductions. Anyway, is there a "legal" limit to the maximum? I'm not looking at 10, but I currently have 2 and it doesn't seem to be enough. I'm tired of giving uncle sam an interest-free loan each year. Yes, I know, invest in real estate (working on it!), but other than that, open to feedback.
Most Popular Reply
Since W2 employees get taxed BEFORE they get their money, you're kind of up a tree on this one.
You'd do better to find a way to pay yourself from your deals thru an S-Corp so you can control how much of it is actually salary (earned income) versus dividend (regular income). You'll take your big deductions at the S-Corp level and you pay yourself only what you need to to be legal.