I have two kids, so on my tax forms at work i carry 3 dependants, them plus me. So when i get paid they take out less taxes on my check, so does that mean i'm going to get less back at the beggining of the year when i go to file my taxes?
2006-09-28 18:28:54 · 3 answers · asked by Crystal W 1 in Business & Finance ➔ Taxes ➔ Other - Taxes
2 kids plus yourself - if you claim 3 dependents you should just about break even with the IRS at the end of the year - maybe get a small refund or need to pay a small amount to the IRS.
If you want a bigger refund, you can claim more dependants - each additional dependent claimed withholds more money from each check, and your refund will be substantially larger at the end of the year.
But claiming more dependants is really just a way of 'banking' your money with the IRS and they pay absolutely no interest. So it is generally best to claim actual number of dependents, or maybe just 1 additional, and put money away each check into a savings account so you'll have it safely earning interest, and available if and when you need it.
2006-09-28 19:28:14 · answer #1 · answered by Piggiepants 7 · 0⤊ 0⤋
It depends on your income. If you have low income like less than $10000/yr thats fine because you will qualify for earned income credit. If you have good income I would change the # you claim to 1 or 2. Otherwise you will be paying in at end of year.
2006-09-29 19:59:33 · answer #2 · answered by linluv2001 2 · 0⤊ 0⤋
The more they take out the more you get back, you have to decide if you need more money each pay check or at tax time.
2006-09-29 01:37:26 · answer #3 · answered by Anonymous · 0⤊ 0⤋