I want to have more taxes taken out of my paycheck, so that I don't get any surprises at tax time and have to pay in. I'm cool with getting a refund in April.
2007-08-28 10:13:07 · 5 answers · asked by rabidbaby 2 in Business & Finance ➔ Taxes ➔ United States
I don't plan to claim any deductions on my taxes.
2007-08-28 10:14:36 · update #1
The "one" and "two" refer to the number of exemptions you are claiming and often coincide with the number of deductions you claim on your taxes. The higher the number of excemptions you put on your W-4 the less taxes will be taken out of your check because the assumption is you will claim more deductions at year end and thus, owe less tax.
You can also claim "single and zero" to have the highest amount of tax deducted from your check.
2007-08-28 10:20:42 · answer #1 · answered by Anonymous · 0⤊ 0⤋
You get one for yourself if no one else can claim you. You get another if you only have one job. Therefore the maximum is 2. You can therefore claim 0-2. These are not the same as the deductions on your tax form. With 2 you should break even. With 0 you will certainly get money back. Why give the government an interest free loan? I would put 2 and if you owe some money who cares? You should be saving it anyway and earning interest. You can owe up to $500 with no penalty. If you insist of having excess withheld then use 1.
If you will have a high amount of earned interest from savings accounts you may also wish to use a lower number to be sure to cover tax on it.
Look at the worksheet that is attached to the w4 and you will see the exemptions are NOT THE SAME as deductions on your 1040. They are just a number to be used in payroll calculations to try to make you come out even. You can even use a higher number than 2 if you are going to itemize and there will be many deductions to lower your tax.
2007-08-28 17:19:56 · answer #2 · answered by Barkley Hound 7 · 1⤊ 0⤋
If you claim zero, they'll take out a little more than if you claim one allowance, maybe $300-500 for the typical person over the year. If too much is taken out, you'll get it back at tax time a a refund.
2007-08-28 17:41:13 · answer #3 · answered by Judy 7 · 0⤊ 0⤋
Claim single 1, and they will take out the most, but you will get more back at tax time.
2007-08-28 17:16:34 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Claim Single and zero...that will take out the maximum taxes.
2007-08-28 17:25:58 · answer #5 · answered by noelbutterfly 3 · 0⤊ 0⤋