Tax Withholding Form W-4 Question?

Question

I know if you apply as Single One and Single Zero on a Tax Withholding Form, it means either you get more money now on your paycheck or more money on your tax return. Now that I am no longer a dependant though, when I fill out the form, I come out as "2" because I am independent and my 2nd job's wages are under $1,000. What does this mean? Will I be getting less money now and more money later or vice versa? Or am I simply just getting more taxes taken out never to be seen again? If I didn't explain my question right, please let me know! Thanks! :)

Answer 1

if you go to the irs website, they have a calulator that lets you figure out how much is supposed to be withheld. you need your last paystub, and it will tell you what your expected end of year owing would be. try it out!

Answer 2

either way if goes as of 2005 tax year if you don't make more than 8,200 you will get all monies paid in back on federal return this amount will probaly go up in 2006 tax year. You figure it like this

8400 Income
-3200 Deduction for personal exemption
-5000 Standard Deduction for single person

which would mean you only owe tax on 200 dollar which for this past year was $21 let say you had 200 taken out in federal taxes you would get the differnce back. $179

Also if you don't make over 11,000 (maybe more not exact figure) you could get earned income credit for people who don't have children which could be up to $399 but you have to be over age 25 to qualify for this credit.


Hope this helps.

Answer 3

If you select Single with 2 exemptions, you will have a bigger paycheck now and will have a smaller refund or a larger tax payment, whatever the case maybe. Whether you will owe taxes at the end of the year or get a smaller refund, it's impossible to tell without knowing your whole financial situation.

To be conservative, I would claim Single with one exemption. In any case, good luck.

Answer 4

I always choose zero deductions on my W-4 and then get a tax return the next year. I would rather pay a little at a time than risk having to pay a lump sum when I file.

Answer 5

the more dependents you claim for withholding, the more money you get now. But this may not get you a refund at tax time.
the less dependents you claim at witholding, the more money gets taken out of your check.
But you'd most likely get a refund at tax time.

The thinking behind this is with more dependant upon you, you'll need more money now.

Answer 6

you get more money now and take a chance on paying at the end of the year