I know if i claim 0 they will take out more every month but I will get more back when i file my tax return?
Is this true? I am not losing any money but not claiming myself as an exemption am i?
2007-08-04 16:37:57 · 4 answers · asked by bruce_eel 4 in Business & Finance ➔ Taxes ➔ United States
Exactly! By not claiming all available exemptions from withholding, you are in effect giving the federal govt. an interest free loan. Whose money is it anyway, theirs or yours?
2007-08-04 16:49:46 · answer #1 · answered by steve 2 · 0⤊ 0⤋
IF you claim 1 then your paycheck will be slightly higher each week and you will get less of a return at year end. If you claim O then they take the most taxes out of your check each week and you get a bigger return at the end of the year. Claim 1, you need that extra $$ each paycheck, dont let the GOV hold it interest free!
2007-08-04 16:42:21 · answer #2 · answered by Paula F 2 · 1⤊ 0⤋
The W4 form your employer had you fill out should have had instructions with it on how to calculate the number of exemptions to claim. You can download a form and instructions at http://www.irs.gov/pub/irs-pdf/fw4.pdf?portlet=3
There is also a calculator at http://www.irs.gov/individuals/article/0,,id=96196,00.html that helps you decide how many exemptions to claim.
2007-08-04 17:17:53 · answer #3 · answered by Anonymous · 0⤊ 0⤋
You would come out even in the end, except that you won't have the money in the meantime. With zero you'll have more withheld, but will get more back also.
2007-08-04 18:01:37 · answer #4 · answered by Judy 7 · 0⤊ 0⤋