I don't want a refund or to owe anything at the end of the year and invest during the year.
2007-06-06 07:04:57 · 9 answers · asked by gidn 2 in Business & Finance ➔ Taxes ➔ United States
You can claim 3 exemptions on your W-4. However, for each exemption that you claim, you are PLANNING on having $3400 in deductions or $10200 in your case. Assuming that you don't itemize and someone else can't claim you as a dependent, you ACTUALLY will have $8450 in deductions. Since you will have a deficit of $1750, you will owe a small amount of money when you file your tax return next year.
My best guess is that you will owe somewhere between $265 and $450. There will be no penalties if you owe this much.
This answer assumes that you do this for the entire year.
2007-06-07 01:29:05 · answer #1 · answered by Steve 6 · 1⤊ 0⤋
The requirement for employers to routinely report W-4s claiming more than 10 allowances has been eliminated. However, if your withholding is not sufficient to cover your tax liability, you may be subject to penalties for insufficient withholding.
I recommend using the IRS on-line withholding calculator to decide the number to claim. I am a single with no dependents that claimed 3 on my W-4 last year. My deductions were less than I had planed and I had to write the IRS a check.
2007-06-06 13:38:37 · answer #2 · answered by STEVEN F 7 · 0⤊ 0⤋
Not a real good idea. If you do, you'll probably end up owing at the end of the year unless you have some significant deductions or credits. If you owe more than $1000, you'll pay penalties for underwithholding in addition to whatever tax you owe.
2007-06-06 07:30:14 · answer #3 · answered by Judy 7 · 1⤊ 0⤋
Yes, you can claim up to 9 dependents on your w-4 without your employer having to report it to the IRS. Above 9 deductions you need to sustantiate the need for so many deductions.
You can also have a specific amount deducted each paycheck rather than a percentage calculated by the number of allowances. Read the W-4 instructions, it will tell you how.
2007-06-06 08:22:06 · answer #4 · answered by Cali Mom 2 · 0⤊ 1⤋
Yes, but just like everyone else said you have to be careful. Remember since you are claiming more people they will take out less taxes out of your check, which sounds good, but when it comes time to do your taxes you may not get much back or you may owe the gov't.
2007-06-06 07:14:56 · answer #5 · answered by Anonymous · 0⤊ 0⤋
I am not sure why you would want to claim 3 if you are single and have no dependents? The result of doing as such will only lead to an audit and penalties. There is probably more to your question, but I am not sure exactly what you are trying to do. Just remember, you can be single and still claim dependents on your tax return and they don't have to be related to you. The tax accounting rule is that you can claim dependents as long as you:
1.) Pay more that 50% of their living expense and...
2.) That they have lived in your house or apartment for more than a year.
I hope this information is useful to you.
2007-06-06 07:59:20 · answer #6 · answered by Miguelangel Ruiz 2 · 0⤊ 5⤋
You can claim whatever you want on your W4; just be advised that if you underpay your taxes during the year, you'll be paying a lot more come April 15.
2007-06-06 07:12:10 · answer #7 · answered by juniorflag 2 · 1⤊ 1⤋
Yes, You can. HOWEVER, there could be a possiblity that you will owe at the end of the year if you are not careful. My ex-husband did that and we ended up owe the gov. a ton of money!
2007-06-06 07:07:53 · answer #8 · answered by Anonymous · 1⤊ 1⤋
You can claim what you want, just don't screw it up and end up having to pay later.
2007-06-06 07:07:10 · answer #9 · answered by al_sparagus 2 · 1⤊ 1⤋