If I claim 2 on my W4 will I o money at the end of the year?

Question

On my W4 I claim 3 things Single, Head of House hold, and a dependent (no one else claims me). So I want to claim 2 but would I o at the end? I make about 50,000 a year. I am head of house hold if I show bank statements that show proof of me paying rent every month as well as being marked head of house hold will this effect anything?


Please help???


Thanks,


Joseph Chaides

Answer 1

If I read your question correctly you do not have a dependent(you said "no one else claims me"). Therefore the only way for you to file at tax time is single. Head of household is for someone who has a dependent child or a relative that lives with you and depends on you for their sole support.
What you claim on your W-4 is a guideline to help your employer hold out taxes for you. If you claim more exemptions than you are entitled you will get more in each paycheck but will likely owe at the end of the year. Many single people claim 0 and even have extra held out so they can be sure they don't have to pay at tax time. It depends on whether you need the money month to month or want a large refund. Either way the tax is the same.
It is actually illegal to claim more exemptions on your w-4 than you are entitled to but I have never heard of anyone being prosecuted for doing this.

Answer 2

I'm not sure I understand your question. Unless you are providing a home for your dependent child or possibly an elderly parent you cannot claim Head of Household.

If you are Single and have no dependents, you will probably be close to the break even point by claiming 2 withholding allowances. You may have a small debt at the end of the year but it should be less than $100 or so.

Answer 3

If you mean that you have a dependent other than yourself, then you'd be correct. From the way you word your question, it sounds like you are thinking that you can claim a dependent exemption for yourself. And if you don't have a dependent living with you that you pay the expenses of provividing a home for, you can't file as head of household either - that doesn't mean providing a home for yourself, it means providing a home for a dependent - paying your own rent doesn't make you head of household for taxes. You get an exemption for yourself, but in tax terms you are not your own dependent.

So if I read your question right, and you don't have for example a dependent child living with you or have a dependent parent, your tax filing status is single, not head of household, you will get one exemption (for yourself) on your tax return. You'd probably get away with claiming two on your W-4 without owing, but if you've been claiming 3, you're probably going to owe. Your tax for the year will probably be around $6900.

Look at what you've had taken out so far, and guess what you'll have taken out for the rest of the year, and see if you will have paid in enough. If not, either have more taken out for the rest of the year, or expect to owe when you file.

Answer 4

I feel you need to understand the words "Head of Household" and "Dependent".

Head of Household
You may be able to file as head of household if you meet all the following requirements.
*You are unmarried or "considered unmarried" on the last day of the year.
*You paid more than half the cost of keeping up a home for the year.
*A "qualifying person" lived with you in the home for more than half the year (except for temporary absences, such as school). However, if the "qualifying person" is your dependent parent, he or she does not have to live with you.

The term "dependent" means:
A qualifying child, or
A qualifying relative.

So make sure that you can file as "Head of Household" and claim a "Dependent". If you make any of these mistakes on your tax return Form 1040A/1040EZ/1040, you will get in trouble.
You should read IRS Publication first 3 chapters of IRS Publication 17: Your Individual Income Tax.
http://www.irs.gov

Answer 5

If I understand your question correctly, you have to provide a dependent's name and social security number when you file your taxes to be Head of Household. So therefore you would be claiming 2 people on your form. During the year, you can 'claim' as many as you want.

Answer 6

The fewer you claim on the w4, the more taxes they will take out of each paycheck. With your income, unless you're investing heavily pretax, you might be paying in at the end of the year. Personally, I claim zero on my w4, and then myself and my depedants on my actual taxes. By doing this, I've gotten nice rebate checks every year. That's where most of our vacation funds come from.