2006-10-19 00:07:34 · 6 answers · asked by ctdunn1993 1 in Business & Finance ➔ Taxes ➔ United States
As Skip has already mentioned, the best way to figure this out is go through the steps to fill out a new W-4. See the form and instruction on http://www.irs.gov/pub/irs-pdf/fw4.pdf.
For a lot of people, the number of withholding allowance on W-4 is not the same as the number of exemptions on the income tax return. Completing the W-4 worksheet is the best way to optimize your take home pay and not owe IRS at tax time.
W-4 instruction is easy to follow. In the first page, you will have to answer a number of questions: your filing status (single, head of household etc), number of dependent, whether you claimed Child Tax Credit.
If you have multiple jobs or if you have a spouse who works, then you have to complete Page 2 as well.
If you don't want to be bothered with the worksheet, then the safest thing to do is the following. Claim one allowance for each person living with you on the highest paying job in the household(if you have multiple jobs and a working spouse). And claim zero allowance on all the others. This should still leave you a good size return at the end of the year.
Best wishes.
2006-10-19 08:31:32 · answer #1 · answered by JQT 6 · 0⤊ 0⤋
Filing listing o dependants takes the most out and then filing 1, 2, 3, or 4 dependants gives you a bit more in your check each week. I would say that to be safe and not end up owing at the end of the year you should not change your dependant amount by more than 3. It won't make for much more money in your paycheck but it may give you an extra tank full of gas each week.
2006-10-19 00:13:12 · answer #2 · answered by Subi 2 · 0⤊ 0⤋
Get a federal tax booklet and do a what-if tax return for 2005 putting down the number of dependants and your filing status. Compute the tax usine your anticipated gross income for this year. It will be close as there are no major changes. See what the total tax will be and look at your paystub to see how much FIT has been withheld so far this year and what the years total FIT withheld will be. By looking at the difference in the amount of tax and amount withheld you should be able to compute how much more you can get in your paycheck without being underwithheld at year's end.
2006-10-19 03:23:44 · answer #3 · answered by acmeraven 7 · 0⤊ 0⤋
Simple answer is 4. But if your wife works, putting that down may cause you to have less tax deducted than you should so you would owe the IRS at tax time. Best thing to do is go through the worksheets attached to the W-4.
2006-10-19 00:11:30 · answer #4 · answered by skip 6 · 1⤊ 0⤋
There is a chart that tells u based on ur weekly income and how many exemptions u claim on ur w-4, it says how much it will take out. U can calculate about how much ur tax will be based on what tax rate u fall in. U do have to take into account what ur wife makes cuz that could place u in a higher tax bracket. Look at past taxes to estimate and also maybe talk to ur taxpayer, he can definitely give u more insight on what I am referring to.
2006-10-19 01:34:45 · answer #5 · answered by Anonymous · 0⤊ 0⤋
it depends on what you are claiming now!
2006-10-19 02:49:40 · answer #6 · answered by ? 6 · 0⤊ 0⤋