I am single making $60k a year and I want to get the most money out of my paycheck without owing the IRS anything. A friend told me that she claims 7 and still got a $100.00 back. She lives in New Jersey and I am in New York City. What number should I put down to get the most out of my check now without owing money at the end of the year?
2007-12-09 05:29:40 · 3 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
If someone has a lot of dependents or deductions, they can claim a large number of allowances and still break about even at the end of the year.
You don't mention having any dependents, or high itemized deductions, so should claim one allowance on your W-4 or you'll owe at the end of the year, plus penalties if you owe over $1000. And your employer could end up with a letter from the IRS directing them to deduct for single/one allowance no matter what you put on your W-4.
2007-12-09 05:51:29 · answer #1 · answered by Judy 7 · 0⤊ 0⤋
It really depends on the rest of the exemptions you claim. I mean- do you own a house that you can deduct interest and property taxes? Do you pay any student loans that you can deduct interest? If you don't have any of these you probably will not be able to get away with 7 dependents claim at year end.
2007-12-09 05:36:31 · answer #2 · answered by fasb123r 4 · 0⤊ 0⤋
This is a very frequently asked question, but I"m afraid there is no quick answer.
As indicated in the messages above, many factors go into determining one's tax amount. The only accurate way to answer is to crunch the numbers.
2007-12-09 07:00:02 · answer #3 · answered by taxreff 7 · 0⤊ 0⤋