Does claiming 2 on your payroll deductions mean more on your check each week or more back at tax time?

Answer 1

As you increase the number of exemptions you claim at work, the tax withheld from your paycheck goes down, your take home goes up. Decreasing the # of exempt. increases the tax taken from the check and take home goes down.
At the end of the yr, you file your tax return. You will pay the same amount of tax at tax time, regardless of what you claimed at work all year. If you claimed more exemptions you will have had less taxes taken out at work so will then either owe tax or get less of a refund. If you claimed less exemptions at work, they would have taken more taxes out of your check and you would get more back when you file your taxes.
Either way, the end result is the same amount of tax paid to the IRS.

Answer 2

This is how I advise people...there are 2 ends of the spectrum...people who are good with money (investing, saving, etc.) and people who aren't so good with money. Think of yourself on a scale of 0-5 of where you are, with 0 being "if I have money I'll spend it" and 5 being "I can turn $5 into $10". Whatever number you are, claim that many. I am single with no children and I claim 5 exemptions because I can take that extra money I get every week, put it in the bank, and collect some interest on it. At the end of the year I owe, but I made some money on interest. If you claim 0 your paycheck will be a little smaller, but you'll get that nice tax refund every year.

Answer 3

The more exemptions you claim, the less taken out of your check. Unfortunatley, that is also often correlated with less of a refund at the end of the year.

Answer 4

The more you claim, the more your company will pay you each week, and the more you will have to pay at the end of the year.

Answer 5

more in check if not claiming 1 --higher the exemption less they take out

Answer 6

More on your check each week, less refund.