We are getting or should say got a huge return this year (8k). Partially due to a state to state move and owning 2 houses for a few months (that interest adds up!). Based on itemizing ONLY our current mortgage interest on this house (not including other deductions such as student loans, etc), using the calc on the IRS site, it says we should have 17 exemptions...that seems like a lot! Manually on the w-4 I came up with 12. 17 seems like a lot, how accurate is that website?

it's actually not far off, but i would, as a payroll professional, caution you against using more than 9 exemptions on your W4, as your employer is required by federal law to submti a copy of your W4 form to the IRS when you do - which means the IRS is going to be 'watching' when you submit your tax return.

so its best to just give them a 'loan' for the year? We already have 7 I think on there (3kids) so i doubt it would change our refund much to just up it to 9. What do you mean they will be 'watching'? Tehy will audit us?

I would NEVER suggest you give the IRS a loan..EEEPS!

but...I mean that they will flag your return and check it to be sure you are filing with accurate information - keep in mind you can legally claim ANYTHING you want on your W4.
Why not figure out how much you need to have withheld and ask your payroll department to withhold a flat amount or flat percentage instead of using the regular table calculations?

7 to 9 will do something

If the IRS site says 17 exemptions, then take 17.

Worst case you have to pay back when you file a return -- but that is a good thing because you would have been earning interest on that money all year.