How much tax will come due if I reduce federal witholding to a minimum by claiming 7 allowances?

Question

I make 15/hour 40 hours a week. and the internship is for 3 months. Is there any other info you would need? Let me know. I just want an approx. ammount...Thanks

Answer 1

How many dependants do you have. Yes, the more dependants you have the more you can claim and the more you get in each paycheck. However, if you claim 7 and have none, other than yourself, you will be paying the government when tax time comes around.

I hope that is what you were asking. The best bet is to claim as many people in your household, you, spouse, kids. If you do this you will optimise paychecks, but minimize the amount you get back in taxes.

Answer 2

$15 times 40 hours a week times 13 weeks is $7800. If you claim 7 allowances they probably won't withhold anything for federal income tax. If that's your entire income for the year, and you are single and a dependent of someone, like maybe your parents, you'd probably end up owing around $250 income tax to the feds. If you are NOT a dependent, you wouldn't owe any tax. But if that's your only income, and you're doing an internship, you're probably a dependent.

If your tax status is other than single, or if you have other income, then the estimate above has no meaning.

Depending on where you live, there might be state and/or local tax too.

Answer 3

Without knowing your ENTIRE tax situation, it's not possible to say.

If you owe more than $1,000 at filing time you may be subject to penalties and interest for underpayment of tax.

There is also a fixed $500 penalty for filing an erroneous Form W-4 with your employer. If you are seriously under-withheld, the IRS may request a copy of your Form W-4 from your employer and if they suspect that you deliberately filed an improper Form W-4, the $500 penalty will be assessed.