What would be the best way to fill out the W-4 if I am a single mom, head of household to get the most back?

Question

Does anyone know about the child care expenses and/or the child tax credit requirements? Is it helpful?

Answer 1

To have the most money deducted from your paycheck and given to the government, claim single and 0 on your W-4. You can also choose to have even more deducted from your paycheck by notifying your payroll department and requesting additional amounts be deducted for taxes. The more you send to the government unecessarily, the more you have refunded to you when you file your taxes.

I hope you understand that you are only forwarding your own money to the government and overpaying your taxes in advance in order to get the largest refund. The best way to fill out your W-4 is to claim the same number of dependants you expect you'll have on your tax return, or in other words, try to estimate exactly what you'll owe so that you neither have to pay tax nor receive a refund when you file.

Take that amount you want additionally deducted and put it in a savings account. Might as well earn .05% interest on it instead of allowing the IRS an interest-free loan.

*gets off soapbox* =)

Here's a link explaining the child care tax credit for which you might be eligible: http://www.irs.gov/newsroom/article/0,,id=106189,00.html

Answer 2

Would need to know the number of children and their ages, and your total income for the year, to give you a really good answer. But if you fill out the worksheet with the W-4 you'll see you could take one allowance for yourself, one for each child, one or two additional for each childunder age 17 depending on your income because of the child tax credit, then additional alowances for your expected child care expenses. Depending on your income, the credits might well wipe out any tax that you'd owe, and you might also be eligible for an earned income credit.

Of the various credits, only the EIC is refundable, which means you get it even if you don't owe any taxes - the other two can only reduce your tax to zero, not give you a refund beyond that. There is something called the additional child tax credit where if you can't take the full $1000 per child in child tax credit, you can sometimes get additional refunded through the ACTC.

Answer 3

It really doesn't matter how you fill out the W4, what matters instead is how you file your 1040 in April. Alot of people get these forms confused. A W4 simply tells your employer how you want your income tax calculated using the IRS Tax charts (which you can find in the Crcular E). A 1040 is your income tax return in which your actualy tax liability is calculated.
For the W4, marking Single or Married but Withhold at the Higher Single rate on the W4 withholds more income tax from each paycheck then marking Married. Also the more exemptions you claim the less you have withheld in income tax from your check.
If you are simply looking to get a large refund in April when you file your 1040 then most likely all you have to do is mark Single and have zero exemptions, this will withold the most in income tax using the IRS Tax charts in the Circular E. HOwever, this also means that you take home less money each pay period. I have friends who don't have any federal income tax witheld from thier paycheck (yes this is legal) they instead stash money in an interest bearing savings account every pay period and then use that money to pay the IRS when they file thier 1040. That way they are not giving the IRS an "interest free loan" every pay period by pre-paying thier taxes, instead they are earning interest on that money themselves.

Answer 4

Very easy..

A) If you want to get more money in your pocket every time you get paid, put a "2" for withholding

OR

B) If you want to get a larger tax return, put a "1" in the box for withholding

just realize that if you go with "B", you are giving the goverment a free loan of your money for a year. The money you get back when you complete a tax return is getting back YOUR OWN MONEY. So you decide..if you need a forced savings, then a lower withholding on a W4 will result in more money being withheld (or taken from your pay) each payday. If you (like me) prefer to have the money in my pocket each payday, even if it means a small or no refund, then by all means choose to have a higher withholding.

I dont understand the second part of your question. Child care expenses are deductible as a credit of up to $3000 per child.
Here's a link with more details:
http://www.hrblock.com/taxes/tax_tips/deductions_credits/fringebenefits/child_care.html

Good Luck
ED

Answer 5

If you are head of household and also get earned income credit, which you will if you make less than $33,000 per year, you most likely will get a refund no matter how you file. I would file head of household with 2 exemptions. That will give you the most money from week to week to live on. Then when you file your taxes, you'll still get a refund.

Answer 6

keep a record of how much you are spending for child care, you do get a tax credit for some or all of the money you have put into day care.