2007-04-20 10:56:15 · 14 answers · asked by gallop49ers2000 1 in Business & Finance ➔ Taxes ➔ United States
"1" should do it. They always take out too much. You could elect to have a higher withholding, but why give the IRS an interest free loan with your money?
2007-04-20 10:59:31 · answer #1 · answered by Anonymous · 0⤊ 1⤋
If you want more money at the END of the year, then you should claim 0 exemptions. This will mean the government will take the most out of your checks each pay period and you will get the biggest refund at the end of the year.
If you have absolutely no financial discipline, and think that a big tax refund is a good thing - then you can go this route. A better way would be to actually claim your correct number of exemptions and put the money in an interest-bearing account.
The government gives you your money back, but they don't give you interest. A big tax return means that you gave Uncle Sam a series of interest-free loans all year.
2007-04-20 11:01:09 · answer #2 · answered by ryebrye 2 · 1⤊ 1⤋
You don't claim anyting on a Form W-2. The W-2 is the form that your employer sends you that tells you how much you earned and how much tax with withheld from your pay.
Maybe you're asking about Form W-4? That's the form that you give your employer that tells them how much tax to withhold from your pay. If you were to claim Single and Zero on your W-4, the maximum amount of tax would be withheld from your pay.
But that is just dumb, in my opinion. You'd be giving the government an interest free loan of YOUR money for up to a whole year, just to get it all back at once. It would make MUCH more sense to have as much $$$ in your paycheck every payday and put that extra in savings and get a small refund at tax time or even pay a bit. That way you get to keep YOUR money as long as possible and let it work for YOU instead of letting it work for the GOVERNMENT.
2007-04-20 12:38:07 · answer #3 · answered by Bostonian In MO 7 · 3⤊ 0⤋
Just lower the number of exemptions to have more money withheld. There is no rule against entering a lower number. You are not allowed to enter a higher number than you are entitled to to have less withheld. BTW: It is a W-4 that you change the number on. If you are already at zero and still want more withheld there is a space on the form for an actual dollar amount.
I don't agree with what you are doing since the refund is given to you without interest. It is better to owe as much as possible without reaching the penalty point. You can then invest the money and pay it when the tax is due.
2007-04-20 10:59:41 · answer #4 · answered by Barkley Hound 7 · 3⤊ 0⤋
Actually, you really want to be setup as close to 0 as owed or due to the IRS as possible. When you get that chunk of money at Tax time, you may feel good about it.. But so does our Government, as they have been using your money all this time and are not even paying you interest (BIG SMILE).
If you really MUST have a big payout at around tax time. Set everything to 1, or 0 (I would at least set 1), and then actually request to have more money taken out of your paycheck over what they will take out normally. Actually have a friend who does this, as he has a horrible time with saving money, so he uses this to save money indirectly. (although now I just need to convince him to put it into an IRA for retirement, instead of buying whatever big ticket item he is lusting after at the moment)
2007-04-20 11:07:38 · answer #5 · answered by rfrstormer 2 · 0⤊ 0⤋
I assume you mean your W-4. Fill out the form, and claim fewer allowances than the form tells you to.
Make this real easy. Fill out the W-4 saying to take an additional $200 each week out of your pay than you need to in order to break even. That'll be over $10,000 you'll pay in extra - OK, your paychecks will be a little short, but you'll get a real nice refund.
Are you sure that's what you really want to do?
2007-04-20 11:01:52 · answer #6 · answered by Judy 7 · 2⤊ 0⤋
2 or more
2007-04-20 10:58:24 · answer #7 · answered by Amanda 3 · 0⤊ 3⤋
Instead of having more taxes taking out, pay less and put the money in a saving account and don't touch it until tax time.
Why let Uncle Sam use your money when you can make interest off of it.
2007-04-20 11:05:22 · answer #8 · answered by bbj1776 5 · 1⤊ 0⤋
Claim 0 deductions. The IRS will take the most possible money out of your checks. Depending on the deductions you claim when you file, you should get more back than you would have otherwise.
2007-04-20 10:59:07 · answer #9 · answered by akuavi 3 · 0⤊ 1⤋
if you're single, claim 0
if you aren't very good at saving money then just claim one less dependent than you will be claiming at the end of the year.
2007-04-20 13:16:36 · answer #10 · answered by Anonymous · 0⤊ 1⤋