What should I be choosing on my w-4?

Question

I am 25, not married, no children, but I live on my own and nobody can claim me as a dependent. I started my job in April and I ended up claiming 3 instead of 0 which would make me exempt on my w-4 for both federal and state taxes. I also withheld an additional $20. Does this mean I am going to get a lot back at the end of the year, or did I kind of screw my self?

well I just sent my fax to the payroll people changing my number to 0...six months of 3 and six month of 0 should probably even out...I hope.

Answer 1

Claiming 3 was too many, but the extra $20 will probably cover it depending on how often that $20 is withheld, unless you are fairly high income in which case you're likely to come up short. If you weren't working at all before April, you'll probably be OK for this year. You aren't likely to get a huge refund though.

By the W-4 worksheet, you could claim 2 - one for yourself, and one if you only have one job. This would bring you pretty close to breaking even one way or the other. I'm not sure where you got the 3rd allowance.

If you change to single/one on your W-4 but don't have extra withheld, you'll probably be OK for next year and get a small refund.

Answer 2

You should have claimed 2, not 3. If the additional $20 comes to more than the amount that should have been withheld, you will get money back when you file. If the amount that should have been withheld is more than the total of the $20 withholdings, you will owe money. If it is a lot, there may be interest and/or penalties as well.