Theres a question on my tax return asking Are you claiming yourself as an exemption? Im not sure what this does if I claim it. Im not dependent on anyone so it says I can claim it but is this a bad thing to do or a good thing?
2007-02-23 10:17:40 · 8 answers · asked by Alia H 1 in Business & Finance ➔ Taxes ➔ United States
You should ALWAYS claim yourself as an exemption. It is a GOOD thing, however, you cannot claim yourself if someone else is claiming you as a dependent, for instance you are a college student and your parents' are paying your way. The parents would claim the child.
2007-02-23 10:22:24 · answer #1 · answered by fisherwoman 6 · 0⤊ 0⤋
Most taxpayers are allowed to claim an exemption for themselves. (For a married couple filing jointly, then times two). Families with dependent children claim an exemption for each child.
Think of it as the standard "break" they give to each individual (except that people who make a LOT of taxable income have theirs limited). Many states have a something similar although they might call it a standard deduction.
It was a way for the government to show favor to the those with smaller taxable incomes, giving them a break on taxes.
The only time it is bad to claim yourself as an exemption is if someone else is going to do so too. If you are on your own, not a college student under 25, then chances are that you are fine. Otherwise, check with someone first before you file.
Good luck!
2007-02-23 11:14:20 · answer #2 · answered by Molly 6 · 0⤊ 0⤋
An exemption is worth 3300 off of your taxable income. If you are filing single you also get a standard deduction of 5150. If you make a small amount and someone can claim you as a dependent it is usualy better for that person to claim you. I such a case you would not take the exemption the other person would for you being their dependent.
2007-02-23 10:27:04 · answer #3 · answered by CHRIS R 1 · 1⤊ 0⤋
If you can't be claimed as a dependent by anyone else, then you DO claim yourself as an exemption. If you owe any tax, then it will reduce the amount of tax that you owe...so it's a good thing.
2007-02-24 13:27:38 · answer #4 · answered by Judy 7 · 1⤊ 0⤋
Everybody is entitled to a personal exemption on their tax return unless they voluntarily give it over to another taxpayer, such as a parent, to claim.
It's perfectly legitimate to claim your own personal exemption on your own tax return, unless someone else provides over half of your support--and there are other requirements that would have to be met for that to happen, too.
What that does is reduce the amount of income you'll be taxed on.
2007-02-23 10:33:02 · answer #5 · answered by Anonymous · 0⤊ 0⤋
If you are not being claimed as a dependent by another taxpayer, claim your exemption!
An exemption reduces your taxable income by $3,300. That's a GOOD thing as it reduces your tax!
Please ignore the first poster. I guess they didn't understand your question.
2007-02-23 10:55:04 · answer #6 · answered by Bostonian In MO 7 · 0⤊ 0⤋
As long as you are not a dependent of someone else (like your parents), this is a GOOD thing. What it means is $3,300 is subtracted from your 2006 income and you don't pay taxes on it! Hope that helps!
2007-02-23 14:25:49 · answer #7 · answered by Lilly 3 · 0⤊ 0⤋
you will most likely end up owing money to the irs at the end...=/ wouldnt do it... (it dosent take out money all year long though)
2007-02-23 10:21:28 · answer #8 · answered by MsMyliss 1 · 0⤊ 5⤋