What are personal and witholding allowances, and how do you find out the total of allowances you are claiming for federal and state? If I am a full time studen and make less than $500 a month, can I claim exempt from tax? How can I find out how much I should have state/federal tax witholding? please help!
2007-03-22 05:27:53 · 4 answers · asked by mc24 1 in Business & Finance ➔ Taxes ➔ United States
Let's just step through the form. Are you a dependent of someone else? If you are under 24 and a full time student, you are the dependent of your parent(s) if they provide over 1/2 your support. If you are a dependent, enter 0 on line A, else enter 1.
If you have only 1 job and are single, enter 1 on line B.
That gives you 1 or 2 withholding or personal allowances. (They are the same.)
2 should result in 0 withholding if you make the same amount each month. 1 should result in some withholding. If you make $500 a month and are a dependent, you are not exempt because you will probably owe some federal tax. If you are not a dependent, you would owe no federal tax, and would be exempt.
State withholding depends on the state. In Illinois you would claim 0 or 1, depending on whether you are a dependent.
2007-03-22 07:47:30 · answer #1 · answered by CarVolunteer 6 · 0⤊ 0⤋
READ the instructions. To be safe claim that you are single and no dependent exemptions, and will be almost certainly have too much tax withheld from your pay and then you will have a nice refund next year. Isn't it nice of the FED govt to act as your savings account--(no interest of course!)?
2007-03-22 06:23:33 · answer #2 · answered by Ovrtaxed 4 · 0⤊ 0⤋
Welcome to our wonderful tax codes.
The information you seek normally comes from the previous year's tax return modified for changes you expect for the current year. There are instructions you can get off of the web on IRS.gov.
Also, look at the instructions that explain (and I can barely say that with a straight face) who needs to file taxes (1040).
Good luck.
2007-03-22 05:34:38 · answer #3 · answered by lunatic 7 · 0⤊ 0⤋
All of the information you need is right on the form. Didn't you ever learn to read the directions?
2007-03-22 05:35:43 · answer #4 · answered by trovanhawk 4 · 0⤊ 2⤋