Best Number to Use on W4 Form?

Question

Whats the best number to put down on the W4 form.

I like extra money but don't want to pay alot come April.

I also heard people say"Break even, owe nothing and get nothing." is that possible?

thanks

Answer 1

Yes, it's possible to come very close to breaking even at tax time. Getting there can be a bit tricky, however, depending upon your particular tax situation.

If you are a single taxpayer, under age 66, not a dependent of another taxpayer, take the standard deduction and have no income other than wages from employment you'll come very close to the break-even point by claiming 2 withholding allowances on Form W-4. In most cases you should be within $50 of even money at tax time.

If your situation is different from the one outlined above you can use the worksheets on page 2 of the Form W-4 to calculate your withholding allowances. You can also use the withholding calculator on the IRS website at http://www.irs.gov/individuals/article/0,,id=96196,00.html to arrive at the same result.

Answer 2

It's probably not possible to break even to the penny, but if you come close, you've done well. Follow the instructions on the W-4 form and you should be close.