what happens if i go exempt for 6 months and the other 6 i go 0 dependents and single?

Question

okay here is the problem this 2006 tax year i put in alot of overtime hours and my check is about 2100.00 every 2 weeks but the problem is that they tax me with like about 600 to 700 hundred every paycheck so i really dont want them to take so many taxes from my checks so should i just go exempt for 6 months or go with 9 dependents and the other 6 i will claim 0 dependents and claim single will i have to pay at the end of the year on tax period 2007?

Answer 1

When your check is $2100 they with-hold as if you're earning this amount on every check for the entire year. It sounds like you need it with-held.

They with-hold more because you're earning more and will have to pay more taxes at the end of the year. What you are suggesting is dangerous because you could come up very short at the end of 2007 and wind up paying penalties if you're more than 10% short on your with-holding.

Before you make a decision do your 2006 taxes and determine how much you're getting back. That will help you decide if you should leave well enough alone or have a little less deducted.

Don't ask for trouble. Make necessary changes but do it cautiously.

There are several options. You can decide how much you want deducted and then fill out a form for your employer or you can look at the tax with-holding tables and pick the number of exemptions (married or single) that matches the amount you want deducted. It isn't required that you be married to have your deductions in the "married" category if that's what you need.

Whatever you do... DON'T GUESS!

Answer 2

It's not legal to claim exempt on a W-4 if you aren't, an you aren't.

If you do that, or go with the 9 dependents for half the year, and claim 0 the rest of the year, you'd almost surely owe a large amount, plus probably penalties for under-withholding.

If you're making $2100 average every two weeks all year, then you need to have about $315 deducted every two weeks for federal income taxes (not counting what they take out for state taxes, or for social security FICA, or medicare, or any other deductions). If they're taking a lot more than that that for federal taxes, you should bump your W-4 up a little, but not to 9, that will pretty surely get you into trouble.

Answer 3

If you claim exempt and then forget to change it (and that happens to many people) You will owe taxes plus interest and penalties. If you are not qualified to claim exempt from having taxes withheld, do not claim it. Claim single with -0- or 1.
For more information call the IRS at 1-800-829-1040
If you under withhold and can't full pay what you owe you will be charged interest and penalties until the balance it paid in full

Answer 4

If you think they are withholding too much, change the withholding. But why the 9 and then change to 0? How about 5 the whole year so you don't forget to up your exemptions? Do you know that these exemptions will do it for you?

You need a tax estimation from a pro to see what you may owe so that you can get your withholding right. Talk to a fee-only financial planner.

Answer 5

since it sounds like you wages are going to be higher when you are exempt, you are probably going to owe a lot of taxes, and you run the risk of owing penalty doing it that way. Maybe you just need to estimate your annual income and then break it down to determine what you need to pay in each pay period. Fill out the form with the information that best fits.

Good Luck!

Answer 6

Maybe you should talk to your tax person, and see if going on a percentage of income deduction program will work out best at the end of the year.

Answer 7

for information about tax exemptions see the tax filing websites. here is one among those. this will provide u discount aswell . try out this and get benifitted. good luck

Answer 8

You can try that. But if you are behind in your quarterly amount owed you'll be charged a penalty.