Any suggestion how to fill out W-4 to avoid high tax deduction? what is a better way to fill out the form married or head of household?
2007-03-07 04:48:08 · 5 answers · asked by Gucci 2 in Business & Finance ➔ Taxes ➔ United States
When you get your 2006 tax return done, use the tax on that to calculate your necessary withholding for 2007. Take the amount on line 63 of Form 1040 and subtract the taxes withheld so far in the year. Divide the remaining amount by the number of pay periods left in the year. You can then go to www.paycheckcity.com to run a few scenarios to see what withholding declarations will most closely hit the amount you need.
2007-03-07 05:27:32 · answer #1 · answered by garyg7 7 · 0⤊ 0⤋
You're married - you can't file as head of household unless you didn't live together for the entire second half of the year, AND you have a dependent person who is a close relative who lives with you (a dependent parent would not have to live with you) and you provide more than half the cost of keeping up the household. Since you say that you live with your mom, not that she lives with you and is your dependent, doesn't sound like you qualify for head of household. So your filing status would be married filing separately, or married filing jointly if you can agree to do so.
On a W-4, married even with 0 allowances could have you owing at tax time if you have to file as married filing separately.
Are you filing separately for 2006? How did you come out on taxes? If you got a big refund, you could have less taken out for 2007 - otherwise, leave it alone, or have more taken out if you owed this year.
Good luck.
2007-03-07 14:16:44 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
Talk to the IRS and see if you can claim your mother as a dependent.
Claim yourself and your mother if you can during the year so you will get more of your wages.
Most people don't realize by not claiming a deduction for themselves the are giving the government an interest free loan.
2007-03-07 12:55:30 · answer #3 · answered by Anonymous · 1⤊ 0⤋
Since you have tight finances, don't make it harder on yourself by not withholding what you are going to owe. You can't count on being able to file married filing joint or head of household.
Just file single and 1 exemption. That way you won't owe.
The real tax for you is Social Security and Medicare (7.65%), and there isn't anything you can do to reduce that.
2007-03-07 13:13:08 · answer #4 · answered by ninasgramma 7 · 0⤊ 0⤋
Before you do anything, get a descent job or the people you have to speak with will be less likely to give you want you want.
2007-03-07 12:55:43 · answer #5 · answered by Ryan B 2 · 0⤊ 3⤋