I've always marked 0 exemptions and get about $1000 back from federal at tax time. If I mark 1 how much more will I retain per check(I gross about $2700 a month and pay $375 in federal taxes a month). Will I have to pay come tax time? Which is better in the long run? What other factors are involved?
Any useful info relevant to my question is appreciated.
2006-06-30 04:51:56 · 8 answers · asked by discostu 2 in Business & Finance ➔ Taxes ➔ United States
Currently I claim zero exemptions (I am single with a mortgage payment). It really depends on what makes up your adjust gross income. Do you receive dividends from companies whose stock you invest in. Are you going to have capital gains taxes to pay? If you have a mortgage or loan then you can deduct the interest if you itemize. I like the idea of getting a lot of money back from the government come tax time but people tell me that I am just giving the government an interest-free loan. I just don't want to have to come up with money to pay the government come tax time. Talk to your HR Manager and see how much less taxes you will pay if you claim 1 exemption and compare that with last year's tax return. It should give you a ballpark figure as to the difference.
2006-06-30 09:44:58 · answer #1 · answered by potatochip 7 · 0⤊ 1⤋
If you put 1 they will take less taxes per check from you if at the end of the year you don't claim any depends then you may end up paying taxes on my personal experience I always rather put 0 to play safe and I always get a return back
2006-06-30 04:57:03 · answer #2 · answered by ماركو الونزو 3 · 0⤊ 0⤋
This question depends on how well you manage your finances.
If you are good at saving claim 0 for half the year and 2 for the other half, you will get less back in refund, but will get more on your pay check. If you are not good at saving then let the Gov save for you and claim 0 the whole year.
2006-06-30 05:11:46 · answer #3 · answered by Just Me 3 · 0⤊ 0⤋
You will get more back if you file exemptions, but you'll end up paying in the end. One year I filed married 1 (which is how I am supposed to file being married) and I got hit hard. I personally think it is better to get the return instead of having to pay then too.
The big difference is, do you want to see the money go after you get it, or before?
2006-06-30 04:56:10 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Unfortunately, its personal preference. If you want less in your check now but a windfall at tax time stay at zero. If you change to 1, you'll get more in your check now but less of a refund. Its all up to your choice! I always select 1.
2006-06-30 05:00:42 · answer #5 · answered by toyman 4 · 0⤊ 0⤋
Look at the top of the W-4 form and fill in the blanks. The more exemptions you put down the less money will be withheld and the smaller your refund will be. If you put down zero then the max amount will be withheld and you will receive the largest refund. Go to IRS.GOV and look at the tax calculator to see what you are looking at if you are curious.
2016-03-26 23:01:00 · answer #6 · answered by Anonymous · 0⤊ 0⤋
0 takes more out during the year but you usually get a bigger return.
my tax code got messed up one year and i was paying on tax code 2 for a while... i ended up owing almost $350
2006-06-30 04:55:16 · answer #7 · answered by littlearthquake3355 3 · 0⤊ 0⤋
zero
2006-06-30 04:55:03 · answer #8 · answered by island3girl 6 · 0⤊ 0⤋