I'm single, right out of college, moved back home and have no one claiming me as a dependent. I'm trying to maximize my return without being penalized down the road but I just don't know how many allowances to fill. Would 3 or 4 raise eyebrows with the mucky-mucks at IRS for being too high? Any ideas?
2007-11-02 05:22:26 · 8 answers · asked by Marvelknight23 2 in Business & Finance ➔ Taxes ➔ United States
Annual salary for work is 40k, but I started in early October.
2007-11-02 05:23:17 · update #1
For 2007 your deductions are $8,750 and you will make around this amount. Even if you make $10,000 you won't have any tax because of Earned Income Credit. So you can claim 3 or 4 allowance.
For 2008, you should change your allowance to 1.
2007-11-02 07:20:40 · answer #1 · answered by MukatA 6 · 0⤊ 0⤋
Just starting in October, you're probably ok with 3 or 4 for this year if you didn't have much income earlier in the year. But be sure to change it back to one in January, or you'll have a big tax bill and possible penalties when you file your 2008 return. If you left it at 4 for 2008, you'd probably owe well over $1000, maybe close to $2000, plus penalties, when you file for that year.
2007-11-02 05:54:45 · answer #2 · answered by Judy 7 · 2⤊ 0⤋
You're not really "maximizing your return" by claiming more exemptions than you should. You're setting yourself up for a big tax bill due with your return plus possible penalty for underwithholding. Follow the W-4 worksheet and you'll come out fairly close to even.
2007-11-02 05:43:10 · answer #3 · answered by npk 7 · 0⤊ 0⤋
Regardless of your income, you can claim one allowance for every $3400 in planned deductions. Planned deductions are your personal exemption and the greater of either the standard deduction or itemized deductions.
In your case, claim 2 to get a small refund, or claim 3 to owe a small amount assuming that you don't itemize.
2007-11-02 11:47:46 · answer #4 · answered by Steve 6 · 0⤊ 0⤋
go ask a person with that kind of knowledge. City Courthouses usually have people there, or City Hall. Just ask around. Sometimes it is different in diefferent places.
2007-11-02 05:26:16 · answer #5 · answered by lamus_maser 2 · 0⤊ 1⤋
you can claim what ever you want, just be prepared to give it all back come tax time
2007-11-02 06:08:42 · answer #6 · answered by Anonymous · 0⤊ 0⤋
lol good luck
2007-11-02 05:26:19 · answer #7 · answered by Dink 3 · 0⤊ 1⤋
HAHAHAHAH do not try it you get busted
2007-11-02 05:25:52 · answer #8 · answered by Anonymous · 0⤊ 1⤋