Form W-4 question....1 or 0 on line 5 for allowances?

Question

ok i always get confused when doing my W-4 for my taxes, i just started a new job and i dont know wether to put a 1 or a 0 for the total number of allowances. I know you can either get more taken out of your weekly check and get back more at the end of year tax time. or vice versa...

Answer 1

The higher the number of allowances the less tax is taken from your check. Put a 1 if you are single and are not a dependent of someone else. Put a 0 if your parents claim you as a dependent on their tax return.

Answer 2

W-4 Line 5

Answer 3

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RE:
Form W-4 question....1 or 0 on line 5 for allowances?
ok i always get confused when doing my W-4 for my taxes, i just started a new job and i dont know wether to put a 1 or a 0 for the total number of allowances. I know you can either get more taken out of your weekly check and get back more at the end of year tax time. or vice versa...

Answer 4

If you use '1' exemption, you will take home more in your paycheck. If you put '0', you'll take home less.

Now for the bad news: If you use '1', come tax time you will likely be hit with a balance owing the IRS.

Here's a work-around but you will have to wait until after the first 3 months of 2008 to do it, ok.

From January 1, 2008 until May 30, 2008 claim '1'. Promptly on June 1, 2008, change that to '0' until the end of the year and in 2009 you may still get a small refund. Why?
Because it balances out on December 31st and the meter starts running from zero after April 30th.

Answer 5

In all honesty, it is up to you. If you want more money each week, fill in a 0. If you would prefer to have less each week but get a bigger regund at tax time, then select 1. I don't know your personal situation so I can't tell you what would be best. Me though, I would pick 0 because that way you can do do something like invest the money, instead of giving the IRS an interest free loan on you.