I'm single, 51, share rent with 30 yr. old son. For my paycheck, should I claim 2 to have more money raken out, or should I claim zero? I have 19% of federal taken out for taxes. I make 6.75 an hour, plus commission, however, I just started the job, so I don't know how much commission will be. I am told that no paycheck is under $500 takehome.
2007-07-20 04:51:41 · 3 answers · asked by mom420 1 in Business & Finance ➔ Taxes ➔ United States
The more witholding allowances you claim, the LESS will be taken out of your pay.
If you're single and have no dependents and don't itemize, which sounds like your situation from what you're saying, then you probaly want to claim 1 allowance.
If you claim 0 it's likely that way too much tax will be withheld. Although you'd get that back when you file, there's no good reason to make an interest-free loan to the government.
If you claim 2 you'll be very close to even money at the end of the year -- usually within $50 either way. That's usually the best bet but if you want to ensure that you don't have a balance due then 1 would be the best bet.
2007-07-20 04:59:26 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 0⤋
If you claim zero your paycheck will have more taken out f it and it will be smaller, the up side is if you are entitled to a refund this amount will be larger.
If you claim 2 your paycheck will be larger but you run the risk of oweing the federal government for under paying taxes at the end of the year filing.
2007-07-20 05:01:03 · answer #2 · answered by freebyrd1907 2 · 0⤊ 0⤋
You could always claim 1 allowance. You'd be pretty safe that way that you wouldn't owe much if anything, and would very possibly get a small refund. If you earn good commissions more tax will be taken out to make up for it, without your changing your W-4.
2007-07-20 05:04:17 · answer #3 · answered by Judy 7 · 0⤊ 0⤋