how many dependents should I claim on my W4 to increase my bring home pay?

Question

I'm an unmarried mother and part time college student. I would like to get a refund at tax time but the money would be more useful each week.

Also, can you claim more expemtions on your W4 than people in your family? If so, how?

Answer 1

If you qualify for the earned income credit, then you can re-fill out your W-4 to get part of that money back weekly. Basically it reduces your withholding and puts more money in your pocket weekly. The formula's used to figure this out are horrendous, I'm an accountant and I don't like to do it. So, just raise your deductions by 1 or 2 people. Just make sure they are withholding enough to cover anything you may owe at year end, or you could end up paying a penalty with the tax money when you file next year.

The IRS never physically sees your W4's unless you claim more than 7 exemptions (it may be 10) and then your HR person is required by law to send it in and the IRS will audit you to see if you have that many dependents.

It is always wise to schedule your exemptions to reflect the reality of your taxes. A perfect schedule would be you pay nothing and get little back at filing. The IRS pays you no interest on holding your money for a year, so it is far better to get the money in your hands as quick as possible.

Answer 2

You don't claim dependents on Form W-4. You claim withholding allowances. The more allowances you claim, the less tax is taken out. If you're single you can generally claim 2 allowances without running up too much of a bill at tax time -- usually less than $100. If you owe more than $1,000 when you file there will be penalties and interest for underpayment of tax. I usually aim for a debt of between $750 and $900 when I file. That way I have as much money in my pocket as the law allows for as long as possible. Of course, I make SURE that I have the money to pay the tax when I file!

Answer 3

The W-4 does not claim dependents or exemptions they're called allowances. Go to your HR dept and ask for a W-4 and answer questions A thru H. When you do, you should be able to account for at least 4 allowances or maybe more. But remember the more you claim the less taxes they'll take out and the less refund you'll get.

Answer 4

You can claim up to 9 without providing proof. You may end up owing at the end of the year if you claim too many.

Don't forget that state taxes compute differently and you can really get hit hard if you don't figure it right.

One year I owed the state $2000 and got a FED REFUND of $4000... Go figure... Then I got smart and hired a tax advisor. If they do you taxes for you at the end of the year, they will often do this kind of calculation for you at no extra cost.

A tax advisor will have a little chart they can use to compute exactly how to fill out your w4. Most tax advisors will give you a free initial visit and I suggest you find one, make an appointment and ask them this question. Bring last years tax returns to your initial meeting.

Good luck

Answer 5

To get more take-home pay, claim as many dependents as you can. You can claim (1) yourself, and (2) anyone who lives with you that you are supporting -- they don't have to be children. There are situations where you can claim more dependents than people in your family, but the rules are strict and the IRS tends to take a closer look at people who do this, so I don't recommend it.

Answer 6

as many as you want but keep in mind you might have to pay it back at the end of the year. It happened to me. I claimed 6 for 6 months and I had to pay some back. Its not much a difference you know.

Answer 7

You can claim the number of people who you claim as dependents plus you can work through the worksheet on page 2 of the w-4 and claim additional exemptions based on your deductions and credits

Answer 8

claim 9..u will get the least amount taken out