i'm alil confuse as to the allowances on w-4 forms. if u're a single with 1 job no dependents or anything, the worksheet says ur allowances is 2, but could i put 1? wats the diff? appreciate any answer.
2007-02-13 18:56:19 · 1 answers · asked by nhan4545 2 in Business & Finance ➔ Taxes ➔ United States
Most single people with no dependents put 0 or 1.
The more exemptions you put down, the less money is taken from your paycheck for taxes each week.
HOWEVER, when it comes time in April to pay taxes, if you are single with no dependents, the tax tables will show how much in taxes you should've paid for the year. If you put 1 or 2 exemptions on your W-4 and too little in taxes taken out of your check, you will likely owe money ... and if you put 2 you will definitely owe money and it's probably going to be a lot.
Most people tend to put the lowest number possible on their W-4s to avoid having to write a big check to the government in April, and in fact putting a 0 will more likely than not get you a refund in April instead.
2007-02-13 19:09:25 · answer #1 · answered by maxximumjoy 4 · 3⤊ 2⤋
The exemptions you claim on the W-4 are for withholding purposes between you and your employer. You cannot claim more dependents or allowances than you are entitled to, but you can claim less.
If you claim fewer, more money will be withheld from your paycheck - your employer doesn't keep it, it goes to the Feds. When you file your return, you report the correct number of exemptions and calculate your taxes. If you have sources of untaxed income (dividends or something) you may want to withhold extra taxes (lower # of dependents) to keep from owing.
The objective it to come out close to even, or owe a little bit (not enough to get a penalty), Try to save the extra cash rather than send it tax free to the government. Fund an IRA and you'll get an extra tax break as well.
2007-02-14 00:38:32 · answer #2 · answered by Taylor1 3 · 1⤊ 0⤋
This Site Might Help You.
RE:
W-4 allowances, 1 or 2. which one would let you take more $ home?
i'm alil confuse as to the allowances on w-4 forms. if u're a single with 1 job no dependents or anything, the worksheet says ur allowances is 2, but could i put 1? wats the diff? appreciate any answer.
2015-08-20 21:41:37 · answer #3 · answered by Langston 1 · 0⤊ 0⤋
Fwt Allowances
2016-10-07 02:11:14 · answer #4 · answered by ? 4 · 0⤊ 0⤋
For a single taxpayer with one job and no itemized deductions, claiming 2 (as recommended by the W4 instructions) will result in just about a zero refund situation. You might have a small tax due or get a small refund, though it should be within about $50.00 either way of even money.
That is actually the ideal situation. If you claim fewer withholding exemptions you will get a larger refund but a smaller paycheck every payday. Some people like to get a fat refund but they're making an interest-free loan to the government in exchange for that refund. It's much wiser to take the money on payday and put it in the bank where it will earn a bit of interest for YOU instead of giving the government an undue windfall.
2007-02-13 21:55:25 · answer #5 · answered by Bostonian In MO 7 · 14⤊ 2⤋
The fewer allowances you claim, the more federal tax is withheld.
2007-02-13 19:03:58 · answer #6 · answered by Brian G 6 · 4⤊ 0⤋