I am going to be making $37,000 a year. I am 22 years old, and I live with my boyfriend in our own apartment. I am currently paying rent, student loans, an additional credit loan, credit card payments, my car payment, my cell phone etc. so I need as much money as I can get in my checks. We get paid twice a month. I would like to claim 1 so that I can get more money in each check but I dont want to have to owe anything when I file my taxes. How can I figure out what is best for me to claim? Any insight would be greatly appreciated.
Thanks!!
2007-12-26 08:08:08 · 2 answers · asked by Ilana K 1 in Business & Finance ➔ Taxes ➔ United States
Go ahead and claim single/one allowance on your W-4 - you won't owe when you file. You could even claim 2 allowances if that's your only job, but if you do you might owe a little at the end of the year.
2007-12-26 08:13:54 · answer #1 · answered by Judy 7 · 2⤊ 0⤋
sounds like me..! lol... Oh boy... it's tough... I made 38k last year, but claimed single and 0. and i owed the state $40. I only got like 870 from the IRS... this year, i'll make about 40+. and I claimed single and 0 plus $5 extra each check... I'd rather the IRS owe me than me owe them. we'll see what happens...
if you take the refund that you got last year and divided it by how many time a year you get paid (semi monthly - 24 or bi-weekly - 26) that's how much extra you would have in less taxes taken out.... hope that makes sense. if you made more this year than last, then that formula wont work.
It sucks that on 37k+ a year or more we're getting reamed... i think it's crap... but you paying student loans will be good because you can write the interest off on those!
good luck
2007-12-26 09:52:16 · answer #2 · answered by stephanie_hamett 2 · 1⤊ 0⤋