Basically I know I will end up getting back my federal and state taxes because I'm military and only my monthly pay is taxed and my BAS and BAH is not. So when it comes to tax time I get it all back. I am married with 3 children and my wife does not work so I know I get everything back. I heard you can claim up to 10 and when you file claim you real amount and not get in trouble. Basically so you get it all back in your paycheck and not give the government a tax free loan for the whole year and give it back to you doing tax time. Is this true?
2007-03-18 13:54:20 · 3 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
I don't think airforce wife read my question stating I know I will not have to pay out at the end of the year
2007-03-18 14:01:46 · update #1
I meant didn't read my question
2007-03-18 14:02:03 · update #2
You can claim any number of allowances on a W-4 that doesn't end up with underwithholding, which would mean not enough taken out.
You are correct that when you file your return at the end of the year, you claim the exemptions that you actually have for you, your spouse, and your dependents.
2007-03-18 14:45:07 · answer #1 · answered by Judy 7 · 1⤊ 0⤋
You don't claim "deductions" on your paycheck.
You file Form W-4 with the Finance Office to tell them how much to withhold from your taxable military pay. If you are married with 3 children and your spouse doesn't work you should claim 5 or maybe 6 withholding exemptions but no more.
If you claim 5, you will typically receive a small refund when you file your tax return -- typically $300 - $500 in most cases. If you claim 6 you should be within $50 or so of even money with the IRS at tax time.
If you claim too many exemptions (and 10 is too many in your case unless you have significant itemized deductions that you need to account for) not enough tax will be withheld from your taxable pay and you will owe at tax time. If you have significantly too little withheld, you will be penalized for underpayment of your income tax liability.
2007-03-18 15:26:07 · answer #2 · answered by Bostonian In MO 7 · 1⤊ 0⤋
NO! And that is really stupid to do! The smartest thing to do it claim 0! Then you get a big fat check in April! Claiming 10 is LYING and holds a HUGE Penelty! Plus there is a chance you would end up paying taxes at the end of the year instaed of getting it bacK!
2007-03-18 14:00:50 · answer #3 · answered by airforce_wife09102002 2 · 0⤊ 4⤋