How does the number of dependents work? I'm going to be living on my own with my bf-does the number change? I know the more dependents you have, you have less taken out? How does that rollover when it comes April and taxes are due? I'm so confused and frustrated!!!
2006-10-05 16:50:49 · 13 answers · asked by Felecia S 1 in Business & Finance ➔ Personal Finance
Increase your # of dependents. Typically rule of thumb is 1 dependent will reduce the amount of income that tax is calculated on by $3,000.
Moving in with your boyfriend does not change the amount of taxes you will owe. Typically you will only be changing this if you make more $, have a kid, have itemized deductions such as a mortgage payment or charitable contributions in excess of the standard deduction, etc.
Note that you will still owe the same amount of tax come year end, you just don't give as much to the gov't until then. If you need to pay too much to the gov't on April 15th, they will charge you a penalty & interest for not withholding enough.
2006-10-08 17:49:29 · answer #1 · answered by c 3 · 0⤊ 0⤋
You increase the number of dependents. Your b-f does not figure into this. Take a look at last year's tax return. If you got back $800 or less from your tax return, then you cannot claim additional dependents because you will owe come April 15. Each increase by 1 in the number of dependents will give you an $800 increase in your annual income. So, let's say you got back $3500 last year. You would increase the number of dependents on the form by 4, because that will give you another $3200 in your net annual income. When you file, you will get back only $300.
2006-10-05 19:24:06 · answer #2 · answered by Steve R 6 · 0⤊ 0⤋
If you show more dependents then they will take less taxes out now BUT, DON'T claim too many dependents because in April you will OWE the IRS ...you will NOT get a refund and you will be really messed up..
2006-10-05 17:04:05 · answer #3 · answered by MeInUSA 5 · 0⤊ 0⤋
You just talk to your employer and change your dependents. Do remember that taxes are due IMMEDIATELY upon receipt of income - not on April 15. As long as you come close, the IRS will let you go, but if you don't withhold enough, the IRS can assign interest and penalties.
2006-10-05 17:00:00 · answer #4 · answered by ChazS 2 · 0⤊ 0⤋
The way to decrease the amount taken is to increase your dependents...but be careful or you will wind up owing taxes instead of getting a refund.
2006-10-05 16:57:42 · answer #5 · answered by Kimberly S 1 · 0⤊ 0⤋
Increase the number of dependents.
2006-10-05 17:03:04 · answer #6 · answered by Anonymous · 0⤊ 0⤋
The number of deductions you choose is up to you. (federal)
The percentage of state income tax witheld is also up to you in some states.
Ask you HR person @ work for the forms. It's not a big deal - people do it every year as their circumstances change - just like with you.
Don't worry - be happy!
;-)
2006-10-05 17:01:08 · answer #7 · answered by WikiJo 6 · 0⤊ 0⤋
Fill out a new W4 and declare more dependants. You can declare more than you have, but you're tax return has to be correct.
2006-10-05 16:58:22 · answer #8 · answered by shogun_316 5 · 0⤊ 0⤋
Fill out a new W-4. Read the instructions on the form.
2006-10-05 17:01:43 · answer #9 · answered by Diana S 5 · 0⤊ 0⤋
add 1or more depentes fo your W4. if you do this for half of a year or 6 months , then the next 6 months put it back you come out ahead. i hope this made sence, better ask your tax adviser .
2006-10-05 16:59:31 · answer #10 · answered by dinkado 1 · 0⤊ 0⤋