I want to reduce the amount of income that is taxed each month because I always end up with a large refund at the end of the year (I live in California).
2007-04-16 01:36:56 · 10 answers · asked by ichabod40 2 in Business & Finance ➔ Taxes ➔ United States
You can set your W4 allowances anyway you like. There is a W4 calculator on www.irs.gov that allows you to enter your income, expected deductions and expected credits to tell you how to set your W4.
If you are receiving a large refund, you can probably safely raise the number of allowances you are claiming on your W4. If you claim too many allowances, you will not have enough tax withheld and may be liable for penalties at the end of the year.
Generally, a single person with no dependents would claim zero or one allowance. However, if you qualify for special credits you should set your higher. For example, I know that I will be able to claim the maximum Lifetime Learning Credit next year which will give me a $2000 credit. Instead of getting a $2000 refund next year, I set my W4 to single with 4 allowances. I will still get a small refund but my paychecks will have less taken out each week. (I don't like giving the government an interest free loan all year when I have much better uses for the money)
2007-04-16 02:11:56 · answer #1 · answered by TaxGurl 6 · 0⤊ 0⤋
It's quite legal to claim extra withholding exemptions on Form W-4. It's a very good idea actually, if you are getting a large refund.
There are worksheets on page 2 of Form W-4 to help you calculate the correct withholding amounts. Use them!
2007-04-16 01:40:11 · answer #2 · answered by Bostonian In MO 7 · 3⤊ 0⤋
Yes, you're allowed to claim however many allowances on your W-4 that would take you to breaking even at the end of the year.
2007-04-16 05:04:10 · answer #3 · answered by Judy 7 · 0⤊ 0⤋
It is okay for you to claim that more than one during the year. You just have to be sure to file correctly when tax time comes.
2007-04-16 01:41:00 · answer #4 · answered by dolphin2253 5 · 1⤊ 0⤋
I'm assuming you are tolking about claiming allowances on your W4.
Claiming more allowances will decrease the amount of tax withheld. You can claim as many allowances as you want.
2007-04-16 01:44:15 · answer #5 · answered by Mark S 5 · 1⤊ 1⤋
Yes. You can claim as many exemptions as you want (up to 9) for withholding purposes.
2007-04-16 01:42:35 · answer #6 · answered by extra_37 4 · 1⤊ 1⤋
If you get a large refund, then they, your employers are taking too much taxes out for you.
And "trying" to claim another person would decrease your taxes so you would get more back again!
Just ask your Employers to not take so much out and show them your refund and they may do it, or, they may not its up to them.
(Oh, you can "not" claim another person on your taxes, on your income tax form, and I doubt if they will do that for you on your W-4 form).
I wish you well...
Jesse
2007-04-16 01:53:11 · answer #7 · answered by x 7 · 0⤊ 3⤋
Sure, you can claim as much as you want...it all even out at the end of the year.
2007-04-16 01:39:48 · answer #8 · answered by Anonymous · 0⤊ 2⤋
If you have no dependents than you have no bussiness claiming any.Yes it is illegal.We all have income tax to pay from time to time.Just deal with it.
2007-04-16 01:41:38 · answer #9 · answered by sharen d 6 · 0⤊ 2⤋
sure it is ok if you are blind or over 65 years old or both.
2007-04-16 01:40:20 · answer #10 · answered by Anonymous · 0⤊ 5⤋