W4 allowances

Forum|Forum|2 years ago
February 7, 2024
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Hi,

I have zero allowances in my W4 now, Since a bought a home and will be paying $4500 towards Interest + Tax can I update my W4 allowances to reduce the withholding. can you please let me know whether this is a right approach, and can you please provide inputs on how to update the W4.

Thank You

Anand

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MayaD

Alumni - Intuit

In order to deduct your mortgage interest, the total of your Itemized deduction: medical expenses, charitable contributions, mortgage interest, sales taxes, or your state, local, or property taxes, should be higher than the standard deduction for your filing status.

If the standard deduction is higher, mortgage interest won't affect your federal return.

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ssanand17Author

Level 2

Hi,

Sorry, If I was not clear with my question. I am not referring to Tax deduction. I am referring to tax withholding, Since I have a mortgage payment can I enter allowances in W4 to have reduced withholding? If yes, can you please let me know how to update the W4 with reduced withholding.

Thank You

Anand

KrisD15

Level 15

The W-4 would be updated through your employer however the Home Mortgage Interest Deduction most likely will have no impact on your tax liability.

In order to use the Home Mortgage Interest Deduction, you would need to Itemize Deductions on Schedule A rather than taking the Standard Deduction. This means that the mortgage interest and other deductions listed on Schedule A would need to total more than the Standard Deduction amount.

STANDARD DEDUCTIONS for Tax Year 2023:

Single ……………………………………..………………..$13,850

Married Filing Jointly ………………………………..$27,700

Qualifying Surviving Spouse ………………….……$27,700

Married Filing Separately ………………………….$13,850

Heads of Household ……………………….…………$20,800

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