What is the difference in withholding taxes from claiming 1 dependent to zero (0)? I am modifying my form and I wanted to know how much should I expect this to affect my pay. Thanks for anyone with knowledgeable information.
2006-12-26 09:48:58 · 7 answers · asked by isladelmar7 2 in Business & Finance ➔ Taxes ➔ United States
I am married with no children. Is there a certain table the irs goes by to determine the percentage deducted?
2006-12-26 09:53:45 · update #1
IRS has a calculator that you can use on-line to determine the number of withholding exemptions. Run your numbers through it and see what you get.
2006-12-28 07:53:18 · answer #1 · answered by zudmelrose 4 · 0⤊ 0⤋
As K Soze stated, the number you put on W-4 only affects your tax withholding through out the year. It doesn't change your actual tax obligation.
If you increase the Withholding Allowance on W-4, you will have less tax withholding and more money to take home from each pay check. At the end of the year, your tax obligation is the same regardless of your Withholding Allowance. You will either pay IRS the difference or they return excess withholding.
Given that you are married and probably filing jointly with your husband. To do a proper tax planning you will need to look at both income together. If your goal is to have your withholding equal to your tax obligation at the end of a year, IRS suggest that the higher income person have 2 Withholding Allowance on his/her W-4 and 0 Withholding Allowance for the lower income person.
Best wishes.
2006-12-27 09:47:49 · answer #2 · answered by JQT 6 · 0⤊ 0⤋
The less you claim in exemptions, the more they take out of your paycheck for Federal income taxes and State income taxes (if your state has an income tax).
FICA and Medicare is always at 6.2% and 1.45% regardless of what you claim although FICA caps out when you make more than $94,200 (2006 limit).
Whatever you claim as exemptions on your W-4, it does not affect your actual taxes at year end when it comes time to file. It only affects how much you have withheld during the year.
Again, the lower you claim, the better the chance of a refund at the end of the year. The higher you claim, the better the chance of you owing at the end of the year.
2006-12-26 14:12:32 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Withholding tables are pages 39-58 of IRS Publication 15 (linked below). Without knowing your income and how often you are paid, the link is the best I can do.
2006-12-26 10:13:04 · answer #4 · answered by STEVEN F 7 · 1⤊ 0⤋
go to irs.gov. at the top of the page will be a search box. type in either withholding table or circular e. this should take you to the circular e from there you can print it out and find what you federal withholding is. your fica will be 6.2% and med 1.45% no matter how many dependents you have.
2006-12-26 10:00:59 · answer #5 · answered by scarlett_tapper 2 · 0⤊ 1⤋
When you put 0 they take more out of your pay! When you put an Depentant such as you or a child they take less taxes out of you pay and at the end you will receive more for the dependent if it is a child.
2006-12-26 09:51:10 · answer #6 · answered by Anonymous · 0⤊ 1⤋
The more you claim the less they withhold. Claiming zero will maximize your withholding and also maximize your return.
2006-12-26 09:51:46 · answer #7 · answered by The Druid 4 · 1⤊ 1⤋