"# of exemptions" on a W-4 and "# of dependents" on a 1040.
2007-03-16 11:08:44 · 5 answers · asked by Strokes 1 in Business & Finance ➔ Taxes ➔ United States
There is no relationship. The number of ALLOWANCES on the W-4 determines how much tax is withheld. It should reflect ALL factors effecting your tax liability. Exemptions are the $3300 reductions in taxable income for the taxpayer, their spouse if filing a joint return, and each dependent. In general, the W-4 should show 1 allowance per exemption plus additional exemptions based on the amount of itemized deductions expected.
Ignore the worksheet on the W-4. It leaves out most of the numbers that matter. Use the IRS withholding calculator.
2007-03-16 12:15:24 · answer #1 · answered by STEVEN F 7 · 0⤊ 3⤋
An exemption is an amount of income that is not taxed (currently $3,300).
There are two types of exemptions: dependency exemptions and personal exemptions. The number of dependency exemptions is the same as the number of dependents on your 1040.
If you are an unmarried taxpayer, you have one personal exemption. Married taxpayers have two personal exemptions.
So the number of exemptions on the W-4 equals the number of dependents on the 1040 plus
Zero (if you have no dependents)
One (if you are an unmarried taxpayer or married filing separately)
Two (if you are married filing jointly)
You get a W-4 allowance for each exemption. You can also get additional allowances, which was not part of your question so not addressed here.
2007-03-17 00:57:31 · answer #2 · answered by ninasgramma 7 · 0⤊ 0⤋
Actually, on the W-4 the term used is "allowances". The number of dependents is one of the main factors that controls how many allowances you can claim, but this number can increase or decrease depending on a number of other factors. Read the instructions for the W-4, and the directions on each line that tell you what to do.
2007-03-16 18:40:51 · answer #3 · answered by Judy 7 · 3⤊ 0⤋
A dependent is one type of an exemption. You also get an exemption for yourself, one if you are over age 65, and so on.
The W-4 form has a worksheet on the back to help you determine your exemptions, and lists those things that qualify. The more exemptions you claim, the less tax you will have deducted from your paycheck during the year.
2007-03-16 18:13:58 · answer #4 · answered by Mel 6 · 0⤊ 3⤋
Line D on the W-4 corresponds to the number of dependents on the 1040.
2007-03-16 18:32:13 · answer #5 · answered by CarVolunteer 6 · 0⤊ 3⤋