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Maximizing Tax Savings

December 4th, 2009 at 04:31 pm

Between DF and I, our gross incomes combined should be around 85K for 2010. DF will continue to take zero allowances to have the maximum tax withheld from his paycheck. I want to bump my allowances up to five (currently at two) for all of 2010. We don't have any dependents so this could be risky (but nothing we couldn't pay if a tax bill comes due).

I will also have a home office (specifically for work, our other extra room will be our personal office) in our new house so I will be able to deduct mileage to and from my actual office (estimate 9,000 miles over the year), what I could get paid if I rented the room out for the year (estimate 5,000), a portion of all utilities and any additions/maintenance/repairs that we have to do on the house. We will also get to deduct our mortgage interest and property taxes. And I will be going back to school in September 2010 so there may be some deductions associated with that. We also have probably close to 7K worth of things to donate in January after our move is complete. So I think we may be okay if I take such a large number of allowances. Are there any tax professionals that can speak to this or give advice on further deductions to take?

4 Responses to “Maximizing Tax Savings”

  1. creditcardfree Says:
    1259945314

    MonkeyMama may chime in at some point. In the meantime, check out the withholding calculator on the IRS website. It is pretty accurate, assuming you put in accurate numbers. My husband works full time, we have two kids and claim 9 on his paycheck and we still get a small refund.

  2. patientsaver Says:
    1259968052

    None of us can read the replies here becus of the white font color.

  3. pjmama Says:
    1260191158

    I'm happy you enjoy reading! It is nice to find people who are similar in age/interests Smile I was just thinking about the nightmare my taxes are going to be! heh. I'm just hoping I get some money back! Guess we'll see.

  4. Jerry Says:
    1260573870

    Yeah, the white-on-white is definitely elegant and understated... but it leads to some legibility challenges! =)
    I, too, would like to know what kinds of educational expenses can be claimed at tax time. For me, this could make a big difference for the next couple of years, and anything that offers some insurance of money back in the Spring is worth a peek!
    Jerry

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