W-4 Filing Status?

Question

If I file 8 instead of 2, would they take more money out of my paycheck?

Answer 1

No, they would not take as much money out of your paycheck. The higher the number of exemptions, the less that they take out. Here is a online paycheck estimator and you can put in the number of exemptions and see in general how much that they would take out:
http://www.paycheckcity.com/netpaycalc/netpaycalculator.asp

Don't forget to put in the state that you live in as well---I live in Tx and there is no state tax so it does make a difference in your deductions!

Answer 2

I wouldn't recommend filing 8. The more you claim, the less they take out and based on what you make, you could end up paying in a chunk when you file your taxes the next year. There are 4 of us, but we only claim 1. You can also change your status any time. So, if you start out claiming 2 and there is not enough being taken out of your check, ask for a new form and only claim 1 or 0.

Answer 3

This Site Might Help You.

RE:
W-4 Filing Status?
If I file 8 instead of 2, would they take more money out of my paycheck?

Answer 4

If you file 8 instead of 2 they will take LESS taxes out of your paychecks. The IRS has a great withholding calculator that you can use to determine what you should be claiming on your W-4. See below for a link to this calculator.

Answer 5

They will take less out of each paycheck. There are drawbacks however. You may end up owing a significant amount of tax when you file your next return.

Also it can be a red flag to the IRS if a person claims a much larger number of dependents than they have in the past. This is of course open to interpretation.

Answer 6

You should put "0", even though your employer will be taking out more out of your paycheck it better than to owe the IRS. Interest and penalties will get the best of you. And if you owe to IRS they will have you change your w4 to "0".
Play it smart, use "0".