To still collect the majority of my paycheck, but ensure I don't have to pay when taxes roll around?
I am single, no dependents, salary $40,000
2007-03-20 06:18:30 · 6 answers · asked by Amanda B 3 in Business & Finance ➔ Taxes ➔ United States
Yes, I do mean W4 -- thank you!
2007-03-20 06:35:20 · update #1
You don't "claim" anything on a W-2. A Form W-2 is the Wage and Tax Statement that your employer sends you every year in January.
Maybe you're asking about Form W-4 that you file with your employer to tell them how much to withhold from your pay? It's not possible to say with absolute certainty without knowing all of the details of your tax situation.
However, assuming that you do not itemize deductions and have only one job you will normally get a modest refund if you claim a single withholding exemption on Form W-4. If you claim 2 withholding exemptions you will normally be within about $50.00 either way of even-money with the IRS at tax time.
This does not take into consideration any income you have that is not subject to withholding such as dividends and interest, nor does it include the tax impact of deductible retirement plan contributions or pre-tax deductions for health insurance premiums or cafe benefit plans. All of those things will impact your ultimate tax liability and will affect any refund or balance due you may have at the end of the year.
The best way to figure out the correct number of withholding exemptions and any additional withholdings needed is to complete the worksheets on page 2 of Form W-4. This will help you set things up correctly so that you do not over or under withhold during the year.
2007-03-20 06:30:30 · answer #1 · answered by Bostonian In MO 7 · 2⤊ 1⤋
I think the safest is to file 1 if you do not want to pay. If you live in a state with state income taxes and have deductions such as student loan interest expense, charitable donations or mortgage interest, you may be able to get away with filing 2, but if this is not the case, I would go with 1.
2007-03-20 14:04:07 · answer #2 · answered by jjoonthego 2 · 0⤊ 1⤋
The easiest way.
Take your 2006 Total Tax Liability line (Line 63 Page 2 of Form 1040) and divide it by the number of paychecks you will be getting in 2007.
Tell your employer to withhold this amount for Federal Withholding.
You will be "protective" for 2007.
2007-03-20 14:07:25 · answer #3 · answered by bold4bs 4 · 0⤊ 2⤋
It is best to claim 0, but AFTER your health care and other deductions are taken. You would be taxed on the adjusted amount, it will lower your yearly refund but you would not owe.
2007-03-20 13:44:31 · answer #4 · answered by irishlass 5 · 0⤊ 1⤋
Claim one deduction on your W4. Theoretically, you will come out even when your do your taxes.
-MM
2007-03-20 13:32:20 · answer #5 · answered by Anonymous · 0⤊ 1⤋
www.irs.gov, individual, withholding calculator.
complete this worksheet. you can return to it at any time if you have changes.
good luck & bless
2007-03-20 15:05:16 · answer #6 · answered by Wood Smoke ~ Free2Bme! 6 · 0⤊ 1⤋