My parents tell me I will owe at the end of the year if I claim us now, but my boss says that I wont and it is best to claim us now to have more money on my check.
2007-05-21 11:37:18 · 5 answers · asked by gamom1975 1 in Business & Finance ➔ Taxes ➔ United States
If you claim 0 dependents, you will have the most taxes taken out of your paycheck. When you file your taxes, claim 2 dependents and you will get a larger refund.
How did I get a thumbs down on this?? That's how it works!! I've been doing it for years!!
2007-05-21 11:41:34 · answer #1 · answered by ? 3 · 0⤊ 2⤋
I am in the same situation. I am a single parent with a minor child. The choice is TOTALLY yours (what your parents and boss say has no bearing).....they are not the ones having to write that check if you do owe!! The decision is dependent upon if you need the $$ now or not. I, personally, claim single 0 and pick both of us up at the end of the year (claiming head of household and him as a dependant). FYI....even if you live with your parents, you and your son are a separate "household" than your parents.
I hear ALL OF THE TIME how wrong it is to do that but I am ENSURING I do not ever have to pay. My logic is that I can spend the additional $25 - $50 per paycheck in the blink of an eye. But, if I receive that $4,000 check, once a year, I am more apt to watch what I spend it on. But again, that also depends on your spending practices.
As far as the "child care credit" goes, that is a credit you are entitled to regardless of whether you claim the child now or later. And it only applies until they are 13 years of age. The choice is yours, good luck!!!
2007-05-21 18:52:07 · answer #2 · answered by Nicki B 3 · 0⤊ 0⤋
Never take any 'rule of thumb' advice about allowances on your W-4. The IRS has an on-line calculator that will do better than anyone here.
Nicki B appear to misunderstand the rules for 'head of household' status. Her math is off as well. For $50.00 per check to equal $4000.00 per year, she would need to be paid 80 time a year. That is 1.5 paychecks per week.
2007-05-21 19:43:37 · answer #3 · answered by STEVEN F 7 · 0⤊ 0⤋
If you are divorced or if there is a custody agreement, you need to be familiar first with that agreement to be sure you can claim him at all. Only one parent can. Otherwise, I would claim him now. You will get a child-care credit if your child is in any type of daycare.
2007-05-21 18:48:19 · answer #4 · answered by Mrs. Goddess 6 · 0⤊ 1⤋
I have always claim 0 during the year then when you file your taxes that is when you claim dependents
2007-05-21 18:47:29 · answer #5 · answered by Deb.'s 2 · 0⤊ 2⤋