Last year I had 2, but this year it calculated to 6, I'm divorced with 1 child and made 4,000 last year 2006. In 2005 I made 11,000. Does that make a difference?
2007-01-28 05:17:07 · 2 answers · asked by robby_miami05 1 in Business & Finance ➔ Taxes ➔ United States
With your income level you probably don't have any actual tax liability. If your income remains the same in 2007 there probably won't be any tax withheld from your pay if your W4 reflects 3 or more exemptions.
If you're claiming 6 on your W4 you're OK for now as long as your income does not go up above its current levels although the number is technically a bit high.
You're probably eligible for the EITC and should file a return to get that $$$. It could be as much as $1,300.
2007-01-28 05:35:12 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 0⤋
That sounds high. The W-4 tells your employer how much money to withhold from your paycheck as income taxes, so you can basically put anything there, but if you have too little withheld (because you report too high a number) you can end up paying a penalty on your income tax return. For your income level, it shouldn't matter since you won't owe taxes anyway. But if you start to earn more in 2007 you will want to keep an eye on this.
2007-01-28 05:33:44 · answer #2 · answered by maxinestringbean 2 · 1⤊ 0⤋