I want to claim 7 allowances, my payroll manager said that was an awful lot. She would not offer any "adivse" or help to determine the number. So am I crazy? Perhaps someone out here can help me out…

I am filing jointly.
I make 000 with 00 annual bonus
My wife makes 000 with no regular bonus
No significant dividends, interest, etc.

Itemized Deductions:
000 Total Mortgage Interest for the year
00 Property Tax
0 Ad Volerum Tax (My State’s "Birthday" Tax)
00 State Tax
0 Charity
0 Car Loan Interest (does this even qualify?)
00 Business Mileage (this was reimbursed, do I still use it?)
00 Health Insurance (this may be pre-taxed?)
50 My 401K contribution (this may be pre-taxed?)
50 My Wife’s 401K contribution (again might be pre-taxed?)
No Children

I am guessing whatever the magic number is that I would do that only one W4, and would claim 0 on the other form…
In response to the third reply:

I was under the impression that deductions were most definitely revelant to Allowances you would claim. Is this not true? Isn’t the point to claim enough allowances so that you are very close to what you actually owe at the end of the year after deductions and credits.

Also, I was about 99% sure the Car Loan, Mileage, 401K, and Health Insurance did not qualify. I just wanted to check.

Proposed taxes and increases.
1.25 percent tax on their property insurance to pay for firefighting in areas prone to wildfires. This tax would be imposed on every homeowner, even those who do not live in wildfire areas. This would be a 5 million tax increase.

Democrats want to create a new split-roll property tax on businesses, which would be a billion to billion tax increase. Businesses would pay higher taxes on offices, warehouses, and storefronts by either paying a higher tax rate, having their property assessed at a higher value, or having their property reassessed more often.

They have suggested reducing the child dependent tax credit, which would be a .4 billion tax increase on families with children and eliminating the senior citizen tax credit, which would be a 5 million tax increase. They have also suggested eliminating the homeowners mortgage interest deduction, which will affect every California homeowner.
Also a .80 cent tax on a 6pack of beer…a 25 cent tax on grcery bags.
This is just a few of the new taxs they want to cover the budget problem….they are also proposing a 1 percent tax on Ipod downloads.

Pub 587 says you can deduct expenses for a separate free-standing structure if you use it exclusively and regularly for business. We’re looking at a 10×10 unit. Based on size, the structure does not require city permits and is not included in the overall property appraisal value. How would you calculate the depreciation expense and portion of utilities on the Worksheet to Figure the Deduction for Business Use of Your Home?

For example –
Home is 900 sq ft and Seperate structure office is 100 sq ft
Home original cost 300,000 (Land = 200K, Bldg = 100K)
Separate structure original cost = 10,000

Method A: Office space is 10% of total square footage. Total basis is 100K + 10K = 110K. Depreciation basis for structure is 10% or 11,000.

Method B: Original cost of separate structure used for depreciation basis 10,000

If using Method B, would you still use 10% square footage to determine indirect expenses like utilities? Can you include mortgage interest and property tax?

We’re both willing to do what’s best. He has his own business in HI & bought a house there. I’m also self employed & have a house in CA. He makes about ,000. I make about ,000. If we file joint federal, can we both write off our property tax for our houses and itemize all deductions for our separate businesses or will they only allow a percentage of it to be written off?What is the best thing to do?What about State tax? We obviously have to file separate because he lives in HI & I in CA right? Can we file joint federal and separate state?HELP.

We have been trying to get a loan for a new vehicle and every time we do, we have the problem of proving our income, because we are self-employed. Our tax returns are very misleading, because we get to deduct things that most people don’t, Like a % of utilities, property tax, house interest, car interest, business supplies, ect….. So after all the deductions it shows we make far less than we really do. And the lenders don’t take that into consideration. What do we do??????
MR Jack C. We DO NOT cheat on our taxes. WE DO have to pay our fair share!!!!!!!!!! If you don’t know what your talking about and can’t help, then SHUT UP!!!!!!!!!!!!!!!!!!
Thank you to everyone, I should give you a few more details. Another problem is We don’t deposit every check into our checking and savings account, We pay alot of bills by money order and cash since most offices are here in town. So our bank statements don’t even give a good source of income. We were approved for a loan for 23,000 based on what we told them we make, when we faxed our tax forms to them they said they would have to drop the amount because it showed far less was made. We even sent them the 1099 to show what he actually made, But they said by law they had to use the amount on the tax form after all deductions. We have been making the same amount payment on the car we are trading in, so we can make the payment, It is just proving that we make more than our taxes show.

I use my home for small business. However every time I put in expense like cell phone or utilities, I got less refund. Before I put in any expense, I can get 00 refund, but if I add cell phone or utilities expense 00 for my home business, the refund will be lowered to 00.
Also it won’t help on mortgage interest and property tax, since you already deduct them with your normal itemized deductions.
What’s the problem with this? I think atleast I can deduct some expense.
I am not getting EIC.