Currently my husband is the only full time employed member of our household, while I am a full time student. We wanted to know how many exemptions to claim on his W-4 form that will allot us the biggest paycheck, but not leave us owing a refund at the end of the year? He is currently claiming 0.......we have no children, so it is only the two of us......
2007-08-12 13:07:08 · 6 answers · asked by strtbikegrl 2 in Business & Finance ➔ Taxes ➔ United States
This is a difficult question. But one that can be answered with a pretty good guess.
With no kids you will have 2 exemptions at the end of the year. Now you have to look at your right offs. Do you give to charity or to your church? do you have a home that you can write off your interest and property taxes?
You need to take last year what you made, if its comprable to this year. Figure out what what you got back. Look at the tax form, and if you got back 4,000 what would it have been if you claimed 6 exemptions instead of 2? When you are at zero, meaning you dont pay or dont owe. That will be pretty close to what your husband can claim on the W4 without paying at the end of the year, and without getting anything back.
You can claim anything you want on your W4, within reason. I claimed 5, and Im single and file alone, but I know I will have that many deductions. I dont want to give IRS an interest free loan. But if you are way off, you can get penalties.
So just make it close. Thats the best way to figure it out. As I said if you got back 4,000 with 2 exemptions look at the tax chart and see how many exemptions it takes to get back 0. Then claim that.
Good Luck.
2007-08-12 13:15:34 · answer #1 · answered by financing_loans 6 · 0⤊ 0⤋
First of all the number on a W-4 form is NOT an exemption. Again, it is NOT an exemption.
It is a "withholding allowance". It is NOT an exemption.
The higher the number you claim on the W-4 form the less will be the amount of tax withheld from your paycheck. When you claim '0' you get the most withheld.
I once wanted to claim 99 withholding allowances at a place I worked but at that time the bookkeeper only had a plastic chart that went up to 10. So I had to settle for 10.
Try a bigger number and see what happens. You can file a new W4 Form with your employer anytime you want.
2007-08-12 13:16:36 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Unless he is making over say 18 -20 (800 weekly) dollars an hour you could claim up to 9 exemptions without filling out any extra paperwork or paying at the end of the year. You will get the hope tax credit which will offset 2500$+-
2007-08-12 13:14:14 · answer #3 · answered by polar270 2 · 0⤊ 0⤋
This is the IRS withholding calculator. It will give you a good idea of how many exemptions you can claim w/o coming out owing a bunch of money.
2007-08-12 14:17:37 · answer #4 · answered by Tom's Mom 4 · 0⤊ 0⤋
Two, one for each of you, should come pretty close. If your schooling makes you eligible for education credits, he might be able to claim 3-4 or even more, and still break even at tax time. There are worksheets with the W-4 for doing the calculations.
2007-08-12 13:16:45 · answer #5 · answered by Judy 7 · 1⤊ 0⤋
You'll need to know the amount of income as well. Here's a link to the form. You can figure it out from there.
2007-08-12 13:10:40 · answer #6 · answered by magnolia 5 · 0⤊ 0⤋