[–] ilikeskittles 0 points 1 point 1 point (+1|-0) ago
I'm not sure I understand what you're thinking about doing?
[–] 0110001111 [S] 0 points 1 point 1 point (+1|-0) ago
I apply for a tax credit. The goal is to modify my W4 by exempting myself from a tax year, since the capital loss for my future filing year will be more than my income. Rather than keeping the withholding where they are,i want to modify the W4 to withhold less money per paycheck to match the capital loss.
Example:
Annual Income: 55,000 Capital Loss Credit: 400,000 W4 Total Personall Allowances : 2 Deductions and Adjustments: -25,000
However, is this a good idea? Or should I file my taxes regularly in April and take into account the capital loss then?
[–] ilikeskittles ago
Well when did you have the loss? In 2017? Then take as much of it as you can when you file your return. But you can't write of more than your income I don't believe. I'm not an accountant but I've owned my own business for a long time. I think you're going to need to spread that out over a number of years. So yes you can max out your deductions and you should be okay. But, I'd call a "good" CPA and ask them.
[–] jokersmild ago
I claim 9 on my W-4 and don't file.
[–] clubberlang ago
Claim 9 what?
[–] jokersmild ago
Deductions. It lowers your federal tax to zero.