How many exemptions. Me, wife, and daughter. Claiming 0, paying 500/biweekly. I want to break even end of year

Question

I just want to break even...claim 1, 2, or more?

Sorry....I gross 1700 and 400+ taken for federal taxes

Answer 1

I would at least claim 1 or 2. When you claim 0, they take out the most and it leaves you without much of a paycheck! Since you have a daughter to deduct and you will be able to claim a child tax credit, you may be okay or even get a refund back since your income is not that high...not through you paying out too much tax during the year but through Earned Income Credit which is really like a gift from the government for low income working families.

Go to http://www.paycheckcity.com/netpaycalc/netpaycalculator.asp and put in all your paycheck info including the State that you live in and see how much they take out when you put in the different excemption amounts. You probably need more money with each check so I would at least go to 2 excemptions and I think you will be okay when tax return time rolls around.

Answer 2

If you only have one job and your wife does not work and you have no other income from dividends, interest, etc. you can claim 4 and will just about break even. You should be within about $50 either way of even money.

Answer 3

I used TurboTax this year and it had a section at the end that suggested withholding amount.

You can estimate your tax liability based on what you made last year and adjusting it based on what you are making this year. Once you estimate your income you can estimate your taxes and withholding. Don't forget to figure deductions, etc. just like you are doing your taxes.

Answer 4

Here's a paycheck calculator website to help you calculate the info. www.paycheckcity.com