My boss entered my alloweneces on my W-4 wrong...Is it going to hurt me?

Question

Ok well its November and I just found out that my allowences on my W-4 was entered as a 4 this whole time instead of a 1 like I had put when I filled it out. Is this going to really hurt me? (A little background...I'm married...1 child...make about $36,000 before taxes...husband works and makes a good deal more then me(not sure how much).) Is this going to really hurt us come tax time in a couple months?

Answer 1

You definitely won't get the refund you were expecting! Whether or not you owe is going to depend on how you file (joint or seperately, whichever works best for you), how much your hubby actually makes, and how much he had withheld. It's possible to go and talk to a tax professional now, so that you know what you're going to be looking at when you file. Call one, and ask if they offer that kind of service. I do, but I don't solicit on this site. The last thing you should do is wait until April to find out because you're scared or worried. If you do wind up owing, it's much better to know now, rather than when you have only days to come up with the money to pay the tax bill.

Answer 2

It will most likely hurt you - how much will depend on how much you made all together. You will likely have to pay, or if you normally get a large refund you won't see it this year, or both. Could be as much as around $2700 of a swing. But you aren't really out anything - you got the money in your paychecks.

You'd be wise to change your W-4 now to zero and have maybe and extra $200 a week taken out to try to make some of it up, unless you normally get a refund of a couple thousand dollars or more - if you do, then just change it to be corrent for the future.

Answer 3

You will most liekly have to pay taxes when you file. With a filing of 4 you have been receiving more money per paycheck with less being withheld. I suggest correcting it immediately and start putting something away to pay the tax man in April.