If I claim exemption on my W-4 to get more money now....?

Question

will I owe anything later? I want to claim exemption, and I don't plan on filing for a return later, so will this be ok?

I'm single without any issues such as mortage, and about to start a part-time job. I could really benefit from having less money taken out.

If this is too risky, how about claiming 2?

Thanks for any advice!

Answer 1

For a single person the normal exemptions are 2. You get 1 for yourself (line A) and 1 for being single (line B). This is not the same as the deductions on the tax form (1040) which will be 1.

You can't put more than you are entitled to, only less.

I don't understand what you mean by not filing for a return later. You must file a return if you owe taxes and you should if you expect a refund.

Answer 2

What you put on your W-4 has no effect on you actual tax liability. The less withheld now, the more you owe/less refunded later. The link below is a calculator from the IRS to determine what to put on your W-4 to most closely match your withholding to your actual tax. For singles with one job and no itemized deductions, the worksheet on the W-4 recommends claiming 2.

Answer 3

You can claim as many exemptions as you want on your W-4 as long as you end up paying 90% of the taxes you would normally owe within the calendar year. If you don't, you're liable for penalties, as well as will probably have to file your taxes quarterly and not annually.

Answer 4

Here is what to do. Figure out your expected total income for the year. If it is below about $9000, you will not own any taxes anyway at the federal level. So claim as many deductions as you want.