What is the difference between a 1 and a 2 on a W4 form?

Question

Right now I have a 0 on the form but I want to change it. Is that possible to change after just putting the 0 down a week ago or do you have to wait a certain while.

And what is the difference between a 1 and a 2 on the form. What happens when you put either, I want a detailed explanation of each number.

best answer gets an easy 10 points.

thanks.

Answer 1

The higher the number of allowances you claim, the less income tax will be withheld from your paycheck. The amount difference varies by your income - for the average person, each extra allowance would mean about $500 less withheld for the year.

If you want details, download IRS publication 15, Circular C at irs.gov and read through it - that will give you more detail than you ever wanted. Toward the end of it there's a section that shows the actual calculation for the withholding.

Answer 2

it's how many dependants your claiming. The lower the number (0), the more money in taxes they take out and the less likely you'll have to owe at the end of the year. So if you live with your parents and they claim you on their taxes as a dependant, claim 0. if it's just you, claim 1 and if it's you and a child or someone else, claim 2. If you claim a higher number and it's just you by yourself, expect to pay big bucks come April 14th. or whenever tax returns are due. you can change that number any time.

Answer 3

First of all, the rules of Yahoo Answers does not allow you to determine how many points are awarded for an answer.

Second, the more allowances you claim on form W-4 the less that will be deducted from your paycheck as federal income tax withholding. Zero gets the largest withholding deduction based upon your paycheck amount.

Answer 4

That one says 1 and the other says 2