I have three questions regarding W4 Forms.
1. If you want to have less money withheld, should you claim more or less exemptions?
2. My understanding has been that if you want to have less money withheld, you should claim as many exemptions as you can. However, my son is filling out a W4 for the first time, and he is not eligible for any exemptions. Does this mean that the government will be taking out the maximum amount of money from his check?
3. Is he exempt from withholding anyway, if he is under 18 and is a dependent of someone else? Or does it depend on how much money he will make? He will only be working a part-time job after school.
2007-10-17 14:27:46 · 4 answers · asked by Jaysh 1 in Business & Finance ➔ Taxes ➔ United States
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2007-10-17 14:36:53 · answer #1 · answered by Anonymous · 0⤊ 0⤋
1. Less withheld - more exemptions.
2. Even if he has no other exemptions he can claim one for himself.
3. Withholding is based on how much he earns and if it is less than about $6000 or so there should be no Fed tax withheld. They figure in the standard deduction (about $3700 or so) plus the exemption for himself around $2000 or so. If he can be claimed by someone else as a dependent he could end up owing tax when he files if nothing is withheld. Social Security and Medicare Taxes will be held out in any event.
2007-10-17 21:43:27 · answer #2 · answered by lssm37 2 · 0⤊ 2⤋
To have less taken out, you claim a higher number of exemptions. You aren't legally allowed to claim more exemptions than you are entitled to, although if you want to claim less and have more taken out, that's legal for you to do.
Your son needs to claim single/zero allowances. The amount withheld, if any, will depend on how much he makes - if he's not making much, very little will be withheld if any for income tax. He will, of course, pay the normal 7.65% for social security and medicare.
His being under 18 has nothing to do with how much tax he'll pay, but rather on how much he makes. He'll get a $5350 standard deduction, and if he makes more than that, will pay federal income tax on the amount over that - if he makes under $5350 he won't pay any federal income tax, and if any is withheld, he can file a return and get it refunded. If he's your dependent, he doesn't get a $3400 personal exemption, you get that on your return.
2007-10-17 22:07:30 · answer #3 · answered by Judy 7 · 2⤊ 0⤋
he should claim 0 exemptions. they will take out the minimum amount on his paycheck.
2007-10-17 21:31:36 · answer #4 · answered by Anonymous · 0⤊ 2⤋