I have to dependents but i put none, so i can get money back when i file my tax return - Is this a good thing?

Answer 1

I'm pretty sure you'll get the same amount as if you claimed one, just in a lump sum @ the end of the year, If you claim one than it is given to you each pay check

Answer 2

Of course it's not fraud. Don't know where people got that silly idea.

What it is making an interest free loan to the IRS. You're paying more tax than you're obligated to every month so as to get it back in a lump sum at the end of the year.

If you like that idea, and don't mind losing out on the use of the money during the year, then it's a good idea. If you'd rather keep as much of your own money as you can, then it's a bad idea.

IF - and it's an important "IF" - you have sufficient financial discipline to keep close control of your money, then the best way to do it is to OVERSTATE a dependant or two on your W-4 so that you underpay your taxes by a little less than 10%, and put that extra money into an interest bearing savings account every payday. Don't go over the 10%, or you'll owe penalties at the end of the year. (Check your totals in November, and make a payment if needed to keep your underpayment below 10% of your tax liability)

Then, when you file your taxes, you'll owe Uncle Sam the amount you underpaid.

Warning though...... do NOT do this if you're not 100% sure you can keep that money seperate and not touch it. If you can't pay the underpayment come April, you'll be on the hook for interest and penalties.

Richard

Answer 3

Well, it depends. By claiming fewer dependents you will get a larger tax return, but it means the IRS is earning interest off of your money for the rest of the year. If you are disciplined enough, it would be better to claim the right amount of dependents, and then invest the extra money the rest of the year so that YOU get the interest.

Answer 4

Only if you like having smaller paychecks and giving the government an interest-free loan every year. I hate doing that; I'd much rather have the money in my paycheck and write a check to the IRS for a few hundred than give them free use of MY money!

Answer 5

If you have a hard time saving money, then, yes. If you don't, then, no. If you take the money you would be sending the IRS and invest it even in a low-interest savings account, you will be better off. If you can't seem to put any money away, then the IRS will gladly hold onto it until you file your taxes, because they will invest it and make money off of it instead of you.

Answer 6

Depending on how much money you make you actually get more if you have children. I think it's somewhere in the area of 1,000 per child, so you might want to rethink that.

Answer 7

Yes, you'll get more back. We put dependents on one year and then ended up having to pay IRS......you did the right thing. PLUS now I put 0 PLUS and extra $5 out of each check (just to be safe -- you can do that too).

Answer 8

Well, not really - you are giving the government an interest-free loan of the money for the year. But if that's what you want to do, you can.

Answer 9

YES - if you put 0 exemptions on your job paycheck (which is NOT fraud - it is perfectly allowable), you will have more when you file your taxes later on (when you will of COURSE claim those 2 deductions on your tax form).

Answer 10

It's not illegal. Each paycheck will be smaller and the total that you will get (in the checks and in the refund) will be unaffected, and will get it later. It not a particular bright idea, but if you can afford to wait for your money, you may do so.