What exactly do the exemptions mean? Is it better to have more or fewer exemptions in our case?
2007-01-11 07:45:09 · 4 answers · asked by Beth H_13 1 in Business & Finance ➔ Taxes ➔ United States
Go to www.irs.gov and click on the W-4 link in the top left hand corner. If your spouse works, do one for each of you. If you have to decide where the exemptions go, put them to the job with the higher income.
The idea is that you end up with a small refund at the end of the year. Otherwise, all you have done is given an interest-free loan to the government.
2007-01-11 10:43:36 · answer #1 · answered by skip 6 · 0⤊ 0⤋
Exemptions are what you claim on your tax return for yourself, your spouse if filing jointly, and your dependents. Each reduces your taxable income by $3,300. Allowances are what you claim on your W-4 to tell your employer how much to withhold for taxes. The best way I've found to determine how may allowances to claim is the calculator on the IRS website.
2007-01-11 18:43:47 · answer #2 · answered by STEVEN F 7 · 0⤊ 0⤋
Exemptions are you (subtract $3,300 from your gross income) and any spouse/children ($3,300 for each exemption). You can submit a new W-4 to your employer with the withholdings you choose.
2007-01-11 17:14:02 · answer #3 · answered by Shannon L - Gavin's Mommy 6 · 0⤊ 0⤋
Fewer take out more money
More take out less money
Do you want a refund or do you want to owe the IRS?
Without children I would leave your withholding at single and 0 or 1. Then you can enjoy the refund in Feb. or March!
2007-01-11 15:53:51 · answer #4 · answered by me4tennessee 6 · 0⤊ 0⤋