I want more money in my check each week. Currently claim 0 dependents. How many do I have to change this to so that the least amount of tax is taken from each pay period? Thanks.
2006-10-19 07:26:09 · 8 answers · asked by butterfly 1 in Business & Finance ➔ Taxes ➔ United States
Just because someone is a CPA or even claims to be a CPA does not mean they have accurate tax knowledge. You need to owe at least $1000 to the IRS before the possibility of paying any penalty. I've done plenty of tax returns that the person owes more than $1000 and for various reasons, there is no penalty.
That all being said, claiming 0 on line 5 or your W-4 (which is called withholding allowances, not dependents, not exemptions) is like telling your employer that when you do your tax return, that someone will be claiming YOU as a dependent. If you are single with no dependents of your own and you don't get any credits and you don't file a schedule A, you can usually, safely claim Single 1.
The answerers that said to use the worksheet on the W-4 are making a great suggestion. Please follow it, and good luck.
2006-10-19 15:42:07 · answer #1 · answered by TaxMan 5 · 1⤊ 0⤋
You can increase your take home pay by increasing the number of exemptions you claim. However, be aware that if you claim too many exemptions, you may end up with a large tax bill at the end of the year. As a rule of thumb, take a look at your prior year tax return. If you received a refund and your income will be approx. the same this year, you can increase the number of allowances you claim relative to the size of your prior year refund.
2006-10-19 14:35:16 · answer #2 · answered by san08m 1 · 0⤊ 0⤋
Complete the worksheets that come with the W-4. This will tell you how many allowances you can claim. The idea behind the worksheets is that you only have a small refund to come at the end of the year.
Overclaiming allowances when you know it is not the case is a serious matter.
2006-10-19 14:40:13 · answer #3 · answered by skip 6 · 1⤊ 0⤋
Be careful. If you reduce your withholding so that you owe more than $500 at the end of the year, you will be charged penalties and interest by the IRS. The last thing you want is extra attention by the IRS. The W-4 form indicates that if you are single and work only one job (at a time), then you may claim yourself and you may claim one extra withholding allowance in order to avoid a big refund at the end of the year. If you itemize deductions, the worksheet (as previously noted) will guide you to figure out the number of exemptions you will be properly entitled to take. Unfortunately, social security and medicare taxes cannot be reduced and at lower incomes they tend to be greater than the income tax.
2006-10-19 16:07:36 · answer #4 · answered by Andreas 3 · 2⤊ 2⤋
Fill out a new W-4 with your HR or payroll department. Claim 1 exemption allowance instead of 0. You will get about $63 more each week.
Here is the information from IRS about how your tax withholding is calculated. http://www.irs.gov/pub/irs-pdf/n1036.pdf
Best wishes.
2006-10-19 14:29:47 · answer #5 · answered by JQT 6 · 0⤊ 1⤋
you do not have to pay federal income tax through out the year. you can claim 10 and probably that would be sufficient. it depends on your salary. you have to understand that you will have to pay in at the end of the year if you claim more on your w-4 than you do at the end of the year on your 1040.
2006-10-19 18:41:15 · answer #6 · answered by neon49 3 · 0⤊ 3⤋
You can file EXEMPT on your W-4 and they won't take any taxes out federal and state. That will be the least amount of taxes taken out.
2006-10-19 15:34:25 · answer #7 · answered by EAA Duro 3 · 0⤊ 4⤋
i believe its 7, but then you would have to pay back at the end of the year whatever overage you received.
2006-10-19 14:33:53 · answer #8 · answered by BECKI 4 · 0⤊ 3⤋