I'm single, no kids, a full time college student working a part time job. I make a little over $1000 a month. What should I claim on my W4 form ?. Ultimately, I dont want end up owing the government more money come tax time next year.
2007-03-31 10:33:46 · 7 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
I would claim 0 because your refund will be bigger. Yeah your check will be smaller but at the end your refund will be bigger. Claim 0 because sometimes they take out way to much and you end up having to pay it back.
2007-03-31 13:57:44 · answer #1 · answered by lizzy_one 2 · 0⤊ 0⤋
You can claim as many deductions as you want. Claiming deductions just tells your employer how much money that you want withheld for your tax responsibility. It has no bearing on what you actually will have to pay come tax time. The more that you claim then the more money you will take home every pay check but you may have to pay big at tax time. In your case 12K a year is probably low enough so that you should claim 1 or 2 and have the money in your pocket rather than in a non interest paying account.
If you can afford it, put $20 a paycheck in a savings account and when you get enough transfer the money into Cd's or other investments. You will be a millionaire when you retire if you do this because of the wonders of compound interest.
I hope that this helped explain things to you!
2007-03-31 17:57:15 · answer #2 · answered by Dan J 4 · 0⤊ 0⤋
Owing some money is better than getting a refund. If you over pay your taxes, the government gets some free use of your money.
I don't have an answer to your question. I have to pay estimated taxes every year. I never get close to what I ultimately owe.
Try www.irs.gov. The IRS has a worksheet to use to estimate taxes owed.
2007-03-31 17:40:10 · answer #3 · answered by regerugged 7 · 1⤊ 0⤋
Well, you're ALWAYS allowed to claim yourself as an exemption.
So, assuming this is your own job and you have a simple tax situation (which seems a fair assumption given the info you've provided), it's unlike you'll end up owing if you list "1" exemption. On the other hand, unlikely isn't a guarantee.
2007-03-31 17:48:13 · answer #4 · answered by ISOintelligentlife 4 · 0⤊ 1⤋
If you can be claimed as a dependent, definitely claim zero. If not, either is OK but with 1 it's possible you might end up owing a little.
2007-03-31 18:30:00 · answer #5 · answered by Judy 7 · 2⤊ 0⤋
The best answer to ALL withholding questions is:Use the withholding calculator on the IRS website. It considers more factors than the worksheet on the W-4 or anyone on Yahoo Answers. It also gives you an estimate of how much you will owe or receive as a refund.
2007-03-31 19:27:51 · answer #6 · answered by STEVEN F 7 · 0⤊ 2⤋
If you claim 1, then your check will be bigger, but you tax return will be smaller, you may even have to pay in. If you claim 0, then your check will be smaller, but you will do better at tax return time.
2007-03-31 17:41:50 · answer #7 · answered by antonedbone 2 · 0⤊ 0⤋