2007-01-31 11:53:12 · 7 answers · asked by Roger L 2 in Business & Finance ➔ Taxes ➔ United States
Each exemption is $3400 per year. Divide by the number of pay periods in a year.
The exemption lowers the amount of pay which is taxable. It is not the amount of tax.
Don't forget exemptions have nothing to do with deductions on your 1040. It goes on the W-4.
If you are paid weekly and are in the 15% tax bracket then each exemption would be about $9.81 in tax per week.
2007-01-31 12:00:13 · answer #1 · answered by Barkley Hound 7 · 0⤊ 0⤋
Go to www.irs.gov and use the W4 calculator. Enter her estimated income, deductions, and credits. Her goal should be to just about break even at tax time. If she claims too many allowances, she will have more money on her paycheck but will face penalties at tax time for not having enough withheld. If she claims too few allowances, she will be giving too much money to the government each week and will have to get a big refund. A refund is NOT a good thing, everyone!! It is allowing the government to have and use your money all year. A refund means too much money was taken from your paycheck.
Don't listen to these people who say that a single person must claim Single-0 or Single-1. It all depends on the individual situation. For example, I know that I will have a $2000 education credit on my taxes this year. Even though I am single with no dependents, my W4 was set to Single-4 all year. While I will only get about $100 on a refund, I got an extra $40-$50 on my check every week.
2007-01-31 12:44:23 · answer #2 · answered by TaxGurl 6 · 1⤊ 0⤋
No way to say. It depends upon how much she makes every pay period. She should ask her employer. They can tell her the exact amount for her situation.
If she's not getting much of a refund she should leave her withholding exemptions alone. If she's getting more than about $500 back, she should bump it up by one.
2007-01-31 11:57:52 · answer #3 · answered by Bostonian In MO 7 · 1⤊ 0⤋
If she takes more than she should...she will REALLY pay at the end of the year. If she's single and has no dependants, it's good (if you can afford it) to claim single/zero on your W-4 so you get a decent refund. If you HAVE to...you can claim single/1, but to claim more than that is end of the year, financial agony waiting to happen.
2007-01-31 11:57:55 · answer #4 · answered by Lisa E 6 · 0⤊ 1⤋
I don't understand the question.
Your daughter needs to work more or get a new job.
2007-01-31 11:56:15 · answer #5 · answered by FaZizzle 7 · 0⤊ 2⤋
a couple hundred bucks
2007-01-31 11:56:45 · answer #6 · answered by Another۞Human 2 · 0⤊ 2⤋
Hire an accountant please, you will do us a favor(im one)
2007-01-31 11:57:51 · answer #7 · answered by Anonymous · 1⤊ 2⤋