is there anything i can do to lower the amount of money being deducted? Im 18 no kids...
2006-12-17 08:33:43 · 6 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
Here are a few ideas:
1. You can get married and have kids, but then the money saved in taxes is going to family expense.
2. Move to either Alaska, Florida, Nevada, South Dakota, Texas, Washington or Wyoming they have no state income tax.
3. Increase the amount of deductions on your W-4. Make sure that you increase it just enough so that come tax time you can pay the IRS your balance without penalty. You have to check their website and do some calculations to figure it out.
Lots of people have so much tax taken out and feel good when they get a return. Stupid idea! The IRS is holding your money making interest off it and you get nothing. Pay the IRS the bare minimum put the rest in a interest bearing account and then pay the IRS on tax day your balance and you get the interest not them.
2006-12-17 09:39:40 · answer #1 · answered by Tigerhead90 3 · 0⤊ 0⤋
You are obviously claiming zero on your W-4.
If you are going to college and paying for it out of your pocket (no scholarships), you could probably claim 2 exemptions and be okay for the end of the year tax return. Meaning you won't have to pay at the end of the year. College expense is a huge deduction on your annual tax return.
If you are not going to school I would claim 1 exemption and see where you end up at the end of the year. More than likely you will still get a very small return...but be prepared to pay the government a little just in case.
2006-12-17 09:33:34 · answer #2 · answered by Anonymous · 0⤊ 0⤋
If you're making $70,000 a year, leave it alone. Otherwise, increase the number of exemptions on your W-4 with your employer.
That's if $500 is being withheld for federal taxes. If you live in a high-tax state, then your state tax could result in heavy withholding total. And remember, 7.65% comes out for social security and medicare.
Your best bet now, since it's so late in the year, is just leave things alone, file your taxes as soon as you can, and see if you get a big refund from the feds. If you do, increase your allowances on your W-4.
2006-12-17 09:45:00 · answer #3 · answered by Judy 7 · 0⤊ 0⤋
How many exemptions are you taking? Should be 2 if single & 1 job unless parents claiming you. If they are then you must take zero. Still going to pay same amount of taxes at end of yr so focus on that: not bi-weekly take.
2006-12-18 01:48:50 · answer #4 · answered by vegas_iwish 5 · 0⤊ 0⤋
Update your W-4 for the correct amount; but do a rough tax return first to be sure that you get the correct amount withheld; you don't want to be owing too much on April 15th.
2006-12-17 08:58:07 · answer #5 · answered by crazzi12000 2 · 0⤊ 0⤋
Make sure your tax code is correct
2006-12-17 08:41:46 · answer #6 · answered by Great Eskape 5 · 0⤊ 0⤋