I recently moved into my own apartment in Feb, 07. okay i started a new job as well. And when i filled that my w-2 i think that is what it is. i claimed my self. so i could have a lil extra money to get on my feet. about 3 months later i changed it back to single and 0. so where they took a little more out of my check every payday. okay so my question is when tax refund time rolls around in 08 will i have to pay in or will i get money back? remember that i was only claiming my self for about 3 months. which is 6 paychecks because i get paid 2 times a month. the rest of the time i was single and 0.
I also had another job at this time working where on my w-2 with that company i was living with my parents. so on one job's w-2 iwas single and 0 and on another my parents where claiming me. will that cause a problem? i am very confused and really worried. can someone shed some light please?
2007-12-12 03:50:12 · 5 answers · asked by yourmother 2 in Business & Finance ➔ Taxes ➔ United States
Go to IRS.gov and search on the withholding calculator.
This is a nifty little program that has you input your YTD numbers from your paychecks and answer questions about other income and what you are making now. The program will estimate your tax liability and whether or not your YTD withholding is going to cover it.
2007-12-12 04:47:03 · answer #1 · answered by Anonymous · 0⤊ 0⤋
If you have only one job, you can actually get away with claiming 2 withholding allowances. You would normally be within $50 or so of even money with the IRS at filing time. You might get a tiny refund of have a tiny bill to settle but this will maximize your take-home pay all year.
If you claim 1 allowance all year you will definitely be looking at a small refund unless you have other taxable income other than the wages from your job. Typically you'd be looking at around $400 - $500 refunded to you.
If you claim 0 allowances you'll get a more substantial refund, typically around $800 to $1,000.
The downside to a large refund is that your take-home pay will be less throughout the year. The difference is exactly the amount of your refund divided by the number of pay periods, there is no "free" money involved in the process.
Getting a large refund is dumb, IMHO, as you are just giving the government an interest-free loan for upwards of 15 months. It would make MUCH more sense to claim as many allowances as you can legally and put the exceess money in a savings or investment account and let it earn some interest for YOU. That way, when you file your taxes you'll have MORE money in your hot little hand than if you gave that interest-free loan to the government, EVEN if you actually have to write a check to the IRS at filing time.
Keep in mind that as long as you owe less than $1,000 when you file there are no penalties involved. Savvy taxpayers shoot for that $1,000 target balance owed at filing time and pocket the extra $50 to $100 that it earned while they had it in their possession instead of giving the government a freebit at YOUR expense. If you can discipline yourself to put the money away and not spend it, THAT is the smart way to go!
2007-12-12 04:13:50 · answer #2 · answered by Bostonian In MO 7 · 0⤊ 0⤋
You'll probably be OK. The only catch is that if you are working two jobs at the same time, and making much at all at the second (smaller) job, you can end up paying at the end - since one job doesn't know about the other, they don't necessarily take out enough tax. If you work two jobs at the same time, claiming zero on both is a good idea.
At the end of the year all of your jobs get added together, both for income and for withholding.
2007-12-12 04:06:56 · answer #3 · answered by Judy 7 · 0⤊ 0⤋
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2016-09-05 09:19:59 · answer #4 · answered by ? 4 · 0⤊ 0⤋
Claiming yourself all the time should, at the worst, be a break even proposition. You can probably count on a nice refund.
2007-12-12 03:54:06 · answer #5 · answered by Anonymous · 0⤊ 0⤋