If I claim 2 exemptions will more money be taken out of my paychecks, I can't remember but I had almost $200 withheld from my paycheck today with 2 exemptions, which would give me more money in my checks 0 exemptions or 2 exemptions. Thanks
2006-08-03 17:23:42 · 5 answers · asked by ashleyligon1967 5 in Business & Finance ➔ Personal Finance
Two exemptions will give you more take home pay. Essentially you are asking the IRS to take into account deductions you will claim at the end of the year now. Zero exemptions will give you a fat refund check at the end of the year, but keep in mind that is money you could be using and/or investing all year long. Check to see you are not withholding too little. If you go to www.irs.gov, the site has a withholding calculator available to determine your optimal exemptions and your potential refund next year.
2006-08-03 17:30:15 · answer #1 · answered by Freddie 3 · 1⤊ 0⤋
I'm pretty sure that the more exemptions you put down, the less they will withhold from your paychecks. I put down 1 and get a large percentage withheld, but at the end of the year, I get most if not all of it back. Basically, what it does is ensures that I don't owe any tax money, but have more coming.
If you feel too much is being taken out of your paycheck, you should indicate one or zero (can you even do that? I thought you have to put 1 for yourself) exemptions. But be aware that by having less withheld, you may end up owing money in April.
2006-08-04 00:29:55 · answer #2 · answered by murzun 3 · 0⤊ 0⤋
more exemptions=more money to take home=less tax pay=less refund or owe money when you file tax return in April :)
2006-08-04 09:13:53 · answer #3 · answered by jean 4 · 0⤊ 0⤋
you would most definitely get more money if with 0 exemptions...thats what i do at least...
2006-08-04 00:28:39 · answer #4 · answered by Jess 1 · 0⤊ 0⤋
Less money will be taken out, more taxes could be due during the next tax season.
2006-08-04 00:27:36 · answer #5 · answered by tigertiggerii 3 · 0⤊ 0⤋