I'm trying to find out if I can claim 3 allowances on my W4. I was told to only claim 1 even though when I used the worksheet and it says:
1 if no one can claim me as a dependent.
1 for single and only one job.
1 for Head of Household
That would add up to 3 and get me more money each paycheck. It would bump it up by about $50, and I could use every cent I can get.
Someone told me that will hurt me at tax time, though. I may have to pay?? How can that be when I am doing what the worksheet tells me to?
Should I leave it at 1 even thought I need the money NOW every pay period, not at tax refund time?
2007-11-20 01:07:44 · 6 answers · asked by Super Aunt 2 in Business & Finance ➔ Taxes ➔ United States
Head of household status means that you are providing a home for a closely related dependent. If you are living alone you are NOT considered head of household. You can claim two, and would come out pretty close at tax time, either owe a small amount or get a small refund.
If you claim just one, they'd take out more from each paycheck and you'd get that amount extra in a refund. It's the same amount of money, the only thing that changes is when you get it. If you want more NOW, claim two.
2007-11-20 01:42:55 · answer #1 · answered by Judy 7 · 1⤊ 0⤋
Doing it correct seems to leave me short at tax time. Maybe the IRS is trying to compensate for people who claim too few because they don't know any better, claim too few to have more money withheld, or itemize deductions and have IRA deductions. I agree that it would be better to even out so you get back less than $100 at tax time, but if I were you, I would claim your actual or one less than you can.
Now, about how many you are claiming. You are claiming Head of Household, but you cannot claim that unless there is another person you are supporting by paying over half the living expenses. In most cases, that is a child that you can claim as a dependent, and you did not list one. It can also be a parent or another adult who is not filing and to whom you are not married. The parent does not have to live with you.
I think you can only claim 2 allowances but could be conservative to avoid a tax bill, claim just 1 allowance.
2007-11-20 01:27:35 · answer #2 · answered by Frank 5 · 0⤊ 0⤋
If you claim head of household you must have a qualifying person living in your household. A son or daughter for example. If you do claim the 3 exemptions. If you do not have a qualifying person than claim 2. In claiming the correct exemptions you will either get a small refund or pay a small amount in tax.
2007-11-20 02:35:16 · answer #3 · answered by Michael H 1 · 0⤊ 0⤋
You cannot claim Head of Household if you don't provide a home for your dependent child or certain other closely related persons. The most you can claim is 2. If you claim 3 you will almost certainly owe at filing time.
2007-11-20 01:28:06 · answer #4 · answered by Bostonian In MO 7 · 0⤊ 1⤋
You can claim 3, you will get less taxes taken out now and yes, you could have to pay in at the end of the year.
2007-11-20 01:11:39 · answer #5 · answered by Brenda 4 · 1⤊ 1⤋
Those three items are not additive...
2007-11-20 02:37:42 · answer #6 · answered by Anonymous · 0⤊ 1⤋