Federal Tax Exemptions Question
Our financial planner has always told us to increase our federal deductions so that we have more money in our weekly paychecks instead of a huge tax refund at the end of the year. So, with this in mind we have both changed our federal deductions from 1 each to 2 each. The difference is not significant for me (about $40 more in my pocket per month), however the difference is significant for my Dh (about $440 more in his pocket per month). My question is this...how can I be sure that we won't end up owing money next year instead of getting a small refund? If I take the extra $440 per month that my DH is getting due to the change, the amount is $5280. This is significantly higher than the return that we are getting this year. My fear is that we end up in an "owe" situation next year and I don't want that.