I recently accepted a job in Hosuton TX at a salary of 52k. I am single mom with 2 children and pay childcare expenses. I am also a home owner. I am accustomed to getting substantial income tax returns and would like to continue to get them. How do I make sure that I can keep the most money during the year from my paycheckks without owing at the end of the year? I want to maximize my dollars throughout and at the end of the year. Last year I made 41k so I want to make sure my tax bracket is not going to throw me for a loop? Any general advice? Thanks!!!
2006-11-30 04:02:48 · 5 answers · asked by Making Them Listen 3 in Business & Finance ➔ Taxes ➔ United States
You should seek professional tax advice. If not, complete a pretend tax return using your salary of 52k and figure out what you will need withheld and claim your exemptions based on that. You can probably afford to claim at least 4, since you will be head of household. Also, you can always change your exemptions mid-year. So, you can claim 3 for 6 months and 4 for 6 months.
2006-11-30 05:55:43 · answer #1 · answered by noname 2 · 1⤊ 0⤋
I would list it as 3, though you could easily claim a couple more. The W-4 provides instructions on how to calculate. I'd work through it and then knock a couple of deductions off.
But remember, if you are getting a refund, you are loaning the money to the government with no interest. It would make more sense to claim say all but one deduction and put the difference into a savings account, or buy Savings Bonds. With a SB you are still loaning the money to the government, but you at least get some interest out of it.
2006-11-30 12:14:20 · answer #2 · answered by Aggie80 5 · 0⤊ 0⤋
You want to claim 3 The last thing you want is to owe at the end of the year. If you claim less, they will take out too much. If you claim more, you will have to pay.
I'm not a tax person, but I think it asks you how many you want to claim for a reason.
I used to claim 0 and get a huge return at the end of the year, but they take out the highest % of taxes.
2006-11-30 12:07:10 · answer #3 · answered by Kat H 6 · 0⤊ 1⤋
Go to this link http://www.irs.gov/individuals/article/0,,id=96196,00.html . It is a withholding calculator the IRS has to do just what you want
2006-11-30 13:54:21 · answer #4 · answered by curious george 5 · 1⤊ 0⤋
GO TO A TAXATION OFFICE AND HAVE THEM DO IT FOR YOU.
2006-11-30 12:05:28 · answer #5 · answered by Anonymous · 0⤊ 1⤋