how do I plan for no longer receiving a housing allowance

[dedeteague]

My spouse recently changed jobs from pastoral and receiving a housing allowance to a non pastoral job and not receiving the housing allowance. We have 3 children and struggling trying to figure out how much we should plan for taxes this year. We sold a house that we had been in for less than 2 years so I believe we will have to pay for capital gains and currently in a rental so we won't have that deduction for the year. I'd rather have taxes come out of paychecks rather than paying a large sum at the end of the year.

[Cindy4]

Hi dedeteague! 

We have a great tool to help you plan for adequate withholding.  It's a W-4 calculator and you can find it here:

https://turbotax.intuit.com/tax-tools/calculators/w4/?srqs=null&cid=ppc_gg_nb_stan_all_na_sitelink-c...

In order to figure out about how much capital gains you may owe you will want to gather up all of the costs related to originally purchase the home.  This is called the cost basis.  You also need the amount you sold it for minus any selling expenses.

The capital gain tax rate depends on your total income from the sale which will be your net selling amount minus your cost basis. .  If your taxable income is less than or equal to $89,250 combined for married filing jointly or qualifying surviving spouse, it is 0%.  However, if your income is between $89,251 – $553,850 the gain will be taxed at 15%.

Here is some guidance regarding the calculations:  https://ttlc.intuit.com/community/tax-credits-deductions/discussion/house-sale-adjusted-cost-basis-e....

Hope this helps!

Cindy