Im trying to figure out what I shouldnt claim on my W-4 to not have too much money coming out of each paycheck but not too little and same for end of the year.
2007-07-03 16:40:15 · 5 answers · asked by brittani8502 1 in Business & Finance ➔ Taxes ➔ United States
For your W-4, you can claim 1 exemption for every $3400 in deductions that you plan on having.
Assuming that you are single and are not itemizing deductions, you should safely be able to claim 4 exemptions on your W-4 to come close to breaking even since you should be able to file as Head of Household. This does not account for the Child Tax Credit or any other credits that you might be eligible.
2007-07-04 00:17:46 · answer #1 · answered by Steve 6 · 0⤊ 0⤋
If you get more in each paycheck, then by definition you get less at the end of the year. The total is the same - if you get a big refund, that just means that you paid in more than you needed to, and lent the money interest-free to your Uncle Sam during the year.
If you have one child you should be OK with claiming 2 on your W-4, or even 3 if your spouse doesn't work and you file a joint return. You'd probably still get something back if the child is under 17 because of the child tax credit.
2007-07-04 00:44:43 · answer #2 · answered by Judy 7 · 1⤊ 0⤋
I claim 2 becuase i want my money each pay check instead of letting the government earn interest off of it all year.Just put a little back each pay check and don't touch it until refunds are filed.
2007-07-03 23:50:01 · answer #3 · answered by Roger x 1 · 0⤊ 0⤋
Try this calculator. Click on the link, then select "2007 Withholding Calculator"
Fill in a few blanks and it will tell you the best way to complete the W-4.
http://www.taxcut.com/calculators06/index.html#
2007-07-03 23:44:29 · answer #4 · answered by chiefexec 2 · 0⤊ 0⤋
There are instructions on the W-4 and you should follow them. Those instructions will make sure that you pay the right amount and not over or under pay.
2007-07-04 01:14:05 · answer #5 · answered by towanda 7 · 0⤊ 0⤋