I want to save more money in the long run and dont care about a larger refund at the end of the year. I just don't want to owe any money.
2007-02-20 02:22:18 · 6 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
If you don't care about the size of your refund (smart move!) you should fill out the worksheets on page 2 of the Form W4 to best estimate your withholding exemptions.
If you are a single taxpayer with one job taking the standard deduction and have no dependents, you will get the largest paycheck and the lowest refund by claiming Single and 2 on Form W4. This will just about zero you out at tax time. You'll generally be somewhere between a $50.00 refund and a $50.00 balance due. That's not enough of a balance due to trigger any penalties for underpayment of tax, and low enough for most folks to be able to pay without breaking the budget.
2007-02-20 02:34:35 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 0⤋
it depends how many dependants you have as to what you claim on your withholding. I have 4 kids but I only claim 1 (myself) because I do not make as much money as my husband .so between us we withhold 5, he withholds 4 and I withhold 1 and we do usually get back a small refund (all because of the child tax credit) so it evens out by doing it this way for us. If it is just you then I would claim either 0 or 1 but no more then that. You can claim as many as you want but you don;t want to be oweing at the end of the year at tax time so 1 would save you a little more money on each paycheck being withheld while 0 would take out the macx and give you a refund.
2007-02-20 02:28:39 · answer #2 · answered by Jenny T 4 · 0⤊ 0⤋
I've worked since I was 15, and I've always claimed 0 on my w-4 - even now and I have a child. What ends up happening when you claim less is that your paycheck may not be as much as you'd like but you're pretty much guaranteed to not owe any taxes at tax time b/c they take out the maximum. I'm now 26, and I have always received a refund. I hope that helps a little! :)
2007-02-20 02:34:45 · answer #3 · answered by Anonymous · 0⤊ 0⤋
This is something you should ask your preparer. It will completely depend on your situation. If you claim more, you get more back on your check every pay & give less of an interest free loan to Govt. & smaller refund. The less you claim, the exact opposite happens.
2007-02-20 02:28:14 · answer #4 · answered by ricks 5 · 0⤊ 0⤋
Claim less.
And then set a certain amout from each paycheck aside in an interest bearing account, then pay what you owe from that.
This way you will be getting interest on your money and your bill will be handled
2007-02-20 02:30:10 · answer #5 · answered by hxs 3 · 0⤊ 2⤋
www.irs.gov, individual, withholding calculator. This will get you very close to your taxable amount....
good luck & blessing
2007-02-20 03:35:27 · answer #6 · answered by Wood Smoke ~ Free2Bme! 6 · 0⤊ 0⤋