Last year I claimed myself as a dependant both on my W-4 and my tax return. This year Im not claiming myself. Does it make sense not to claim myself or am I just setting myself up for a huge increase in the amount of tax dollars the government pulls from my pay every week?
I need to know what works best to increase what I bring home each week.
2007-02-20 07:09:46 · 6 answers · asked by tjsnfrd 3 in Business & Finance ➔ Taxes ➔ United States
It all depends on your income. For me I think it was only an extra $20 taken out of my check bi weekly (plus I take out an extra $20 for Federal). I would much rather get money back at the end of the year rather than having to pay in.
Try it for a pay period and if you don't think you can handle it, reverse it.
Good Luck!
2007-02-20 07:14:45 · answer #1 · answered by Jo 6 · 0⤊ 0⤋
The best way to increase what you bring home is to ADD a dependent to your W-4. Instead of 1 use 2. I have done this for years, and I wind up breaking even or owing just a little bit every year. This allows me to maximize my paycheck and use that money when I have it.
Those who get back big tax refunds are foolish. They give the government a big, interest-free loan for a year. Then they act as if they got a big windfall when they could have had that money throughout the year. If that is the only way to get some people to save, they should sign up for an IRA that takes a small amount of money from your check.
2007-02-20 07:15:24 · answer #2 · answered by Anonymous · 0⤊ 0⤋
They will tax the hell out of your weekly check if you claim zero. Here's what you can do. Claim one for each person in the house, you , wife and children. Plus, if you are paying a mortgage, figure out the amount of deduction in dollars that you have for the property and divide that by 3000. If you pay $7000 in interest and taxes then divide by 3000 and you get 2.3. This is an additional deduction for you to claim. Increase your deductions on the W-4 by 2. So, if you're married with 3 kids then that would be a total of 7 deductions.
2007-02-20 07:23:50 · answer #3 · answered by Anonymous · 1⤊ 0⤋
Shouldn't be real huge. The amount depends on how much you make, but would be approximately the tax you'd owe on $3300. which for most people is about $10-$16 a week unless you make a pretty large income, then it could be as much as $22 a week decrease in your weekly takehome pay..
2007-02-20 13:09:59 · answer #4 · answered by Judy 7 · 0⤊ 0⤋
If you do not take the withholding allowance for yourself, your take home pay will go down. Roughly you can expect your take home to be roughly $50-$100 less per paycheck (this is assuming you are on a semi-monthly payroll and reducing your federal withholding allowances would also reduce your state). All you are really doing is hurting yourself, since you'll be giving the government an interest free loan.
2007-02-20 07:30:18 · answer #5 · answered by jseah114 6 · 0⤊ 0⤋
If you do not claim yourself you will not get as much each payday...however...you are setting yourself up for not paying enough in taxes and possibly having to pay in when you prepare your taxes. Having said that...I have claimed 0 and 1 both, and I've never had to pay in to federal, but by claiming 1 I had to pay in to state. I look at is as not as much each payday...but the refund check is like a huge bonus each year!!! Can anyone say shopping spree!?!?!?
2007-02-20 07:14:34 · answer #6 · answered by frustrated 2 · 1⤊ 1⤋