I'm single, I have no children, rent an apartment and just started working full time after having graduated in May. I've only made about $12,000 since Aug. I was told I can claim as many allowances as I wish, as each allowance with -holds more money to be alotted for taxes. Is this correct? About $150 is being taken out every week in all of the assorted taxes. $600 a month seems like a lot. Is there anyone who can give me an estimation of what I can expect back.
Thank you!
2007-01-08 11:06:57 · 2 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
Actually, each allowance you claim on your W4 witholds less money.
Your W4 is like calculator to determine how much tax they should withold. If you claim 1 allowance on your W4 all year, they will withold taxes as if you were going to claim single when you file your taxes at the end of the year.
If you claim less allowances on your W4 than what you claim when you actually file, the IRS will refund you the overpayment when you file.
If you claim more allowances on your W4 than when you actually file, you will owe taxes at the end of the year.
EDIT:
What you will get back will depend on whether or not you claim yourself when you file since you were in school. But it is likely that your parents will claim you.
2007-01-08 11:15:52 · answer #1 · answered by Smart1 3 · 1⤊ 0⤋
Erica N's answer is accurate. The best way to determine how many allowances (congratulations on using the correct term) is the IRS withholding calculator. See the link below.
2007-01-08 12:16:36 · answer #2 · answered by STEVEN F 7 · 0⤊ 0⤋