At work I have 3 dependents (have 4 now wife gave birth) and I give $4 plus paying off 3 loans totaling $80 per week. It comes out to $84 a week which I am contributing into my 401k. 2 of these loans will be paid off on January 2011. I make roughly 45-50k a year.
Couple of questions:
If I raise my 401k contribution from $4 per week to 10% plus change my dependent from 3 to 4, come income tax time will I get a refund or will I be owing Uncle Sam.
lets say I make 45k this year and I contribute $5000 into my 401k. At the end of the year come tax time will I have made 40k or does the $5000 I contributed to my 401k get counted as well.
Wed Sep 01, 2010 5:47 am
coaster Senior Advisor
Cash: $ 1626.30
Joined: 11 Oct 2005
There's a calculator on the IRS web site for figuring out how many exemptions to claim. To figure the wages you want to input into the calculator, just deduct your planned increase in contributions from the wage number you used before.