Does it matter what you file on your w2 as long as you file the correct info on your w4?

Question

I am single with one child and I claim 1 on my w-2.... I am just wondering if I claim the right amount of dependents.

Answer 1

I think maybe you have the forms backwards. You claim a certain number of allowances on your W-4, and exemptions on your tax return. The W-2 just shows what your income was and how much was withheld.

There are many situations where people legitimately claim more allowances on their W-4 than the number of exemptions that they have. The rule is to have enough withheld to pay most of your tax liability for the year. By claiming 1 allowance on your W-4, with one dependent child, you are probably paying in more than you need to. You'll get it refunded to you when you file your taxes.

Answer 2

When you start a job you fill out a w-4. At the beginning of the year you get a w-2. The w-2 is what you use to file your taxes. Tells your net, gross, taxes paid etc.. In your case it sounds like you could claim (1) yourself (2) the child (3) head of household. Depending on how much you make in a year, you many also qualify for earned income credit. Which will give you a very large tax break when filing. You are better off at the end the year claiming as few as possible dependents. You will get more back that way, you can also claim 0. Pay more during the year get it back at the end of the year.

Answer 3

sounds like you have it backwards. you want to file CORRECTLY on your tax return using your W2, in your case single or head of household with 2 exemptions. you have some latitude on the W-4, just follow the worksheet for a good estimate of how many exemptions you should claim on that. if you want a refund, and dont care if you give an interest free loan to the irs, then claim single-0 on the W4.

Answer 4

Okay, on the W-4 - the one where you claim however many exemptions you have-- it's okay to put down a lesser number than you show on your tax return. That's the way a person can be sure they have enough withholding taken out of their checks to cover their tax bill.

It's usually wise to claim 1 less exemption on the W-4 than you intend to claim on the tax form because if you go by the worksheet at the top of the W-4, sometimes you either break even or come out owing at tax time, and nobody wants to do that.

Answer 5

I believe you can claim more dependents than you have on your W-2 just as long as you claim the real amount when you file your taxes on April 15th. You'll just get more on your paycheck every week and get back less at the end of the year if you claim more dependents. I know people who claim 0 (zero) so that they get more on their tax refund.

Answer 6

It matters if the you have excess witholding which causes a large refund or a large payment on your part. Over the last several years, the IRS started enforcing a rule that allows them to penalized people who don't claim proper witholding. Typically, the amount that gets their attention is a refund or payment in excess of $5000. Shortpaying your taxes may cause you to be required start filing quarterly returns. Overpaying through having too much withheld may cost you a penalty.

Ideally, when you file your taxes, you should not have a large refund or payment. You shouldn't give the government an interest free loan through too much withholding.