I live in california.My rate is $15/h and i get some overtime.No matter how much i work, I feel like they are taking too much money away from me.they take away like 300 bucks.I have rent to pay, and a car payment.Is there a way i can let them know that i am paying rent and a car payment?Will it change anything?Please let me know.
2007-06-22 13:52:49 · 7 answers · asked by jestrada2k5 1 in Business & Finance ➔ Taxes ➔ United States
That depends. Did you get a very large refund this year when you filed your tax returns? If so, you should bump up the withholding allowances on your W-4 at work. If you got a small refund or had to pay a little, then you should not mess with your withholding allowances as they are about right.
2007-06-22 14:54:58 · answer #1 · answered by Bostonian In MO 7 · 1⤊ 0⤋
When you filed your return last year, did you get a large refund, or did you about break even? If you got a large refund you could increase the number of allowances on your W-4, and you'd get more in each paycheck since less would be withheld for taxes. But then at the end, whatever you got extra during the year would NOT come to you as a refund.
It's not the IRS's concern that you have rent and a car payment. And most people do, you know.
2007-06-22 15:57:07 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
If you received a large refund last year, then you should claim more exemptions on your W-4.
If you want to know the formula for withholding Federal taxes, then read Publication 15. There probably is a similar publication for California.
If you have the time, deconstruct your paystub so you know exactly how your employer determines your tax withholding.
2007-06-23 06:02:44 · answer #3 · answered by Steve 6 · 0⤊ 0⤋
You could claim a higher number of exemptions on your W4 but, as things like car payments and rent are not deductible, you run the risk of owing at the end of the year.
2007-06-22 14:00:57 · answer #4 · answered by Wayne Z 7 · 1⤊ 0⤋
You could claim more exemptions but you might end up paying next April 15th.
2007-06-22 14:01:22 · answer #5 · answered by breeze1 4 · 0⤊ 0⤋
fill out a new w4 form and claim more dependents. be careful, though, because if you screw up and claim too much, you could end up owing money at tax time.
2007-06-25 18:17:46 · answer #6 · answered by Lisa 4 · 0⤊ 0⤋
declare more deductions half the year even though you are single,doesn't matter
the other half of the year declare zero
2007-06-22 14:01:43 · answer #7 · answered by Anonymous · 0⤊ 1⤋