Does this sound right?? Turbotax.com says I should put 2 allowences?n Please Help me!!! ON MY w-4??

Question

Alot of people told me to file 0, but I went to the turbotax.com withholdings calculator on there and it gave me this..

http://img253.imageshack.us/img253/38/untitledgs0.png

Does that seem right?

Answer 1

there is no "right" or "wrong" on a W-4. if you would like your employer to withhold tax at the maximum level, you can file "0" if you want. if you want to play it safe, file "1" or "0".

Answer 2

Yes it seems right. They are suggesting an an allowance amount that will keep your taxes paid in and the taxes owed about even. Now with this you get less taxes taken out of your check but you will also get less back on your tax return and may even have to pay.

Some people like me claim 0 and enjoy that bigger return at tax time without the worry that I will owe any taxes. But others claim more allowances on their W-4 so they can get more of their money out of their check, instead of lending it to Uncle Sam tax free all year long.

The higher the allowances=more money in your check & less money back at tax time.

Answer 3

It may be. Even the Form W4 will often tell you that. Those calculators are designed to give you the largest paycheck, NOT the largest refund. It's always wiser to keep the interest free loan to the government as small as possible but if you can't discipline yourself to save, claiming 0 will generally get you a large refund and can be used a means of "forced" savings.

Answer 4

If you are "simple", that is all you have is your wages from the one job, and you are filing standard deduction and personal exemption, that is correct. You can file 2 allowances.

Answer 5

I got a lot of good info from this web-site:
http://www.irs.gov/formspubs/article/0,,id=97397,00.html