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How many exemptions/allowances should I claim?

Asked by: 1811 views Tax Discussion

I am a recent college grad. I live at home with my parents but am looking to buy a house possibly within 2011, but more likely in 2012. I have worked at my current job since 2010. I make between $ 40k-$ 50k and currently claim 0 exemptions for both federal and state (ny). I am also single, with no kids. Last year (2010) my parents claimed me. I am wondering if I should increase my exemptions. I would like to break-even each tax filing, or pay a little maximizing my weekly take home pay.

Also, I don’t understand the difference between exemptions and allowances. I am basically trying to bring home as much money each week and have a zero (or owe a little) tax return. Just trying to figure out if I do need to change something, what I need to do at work to get it straightened out.

Thanks!!!
Also, I pay out approximately $ 40 a week for medical/dental/vision, $ 30 a week for my 401k
Just to clarify, I am salaried and my gross pay is between $ 40k-$ 50k. Also, I graduated in August 2011, and was considered a full-time student Spring 2011 and Summer 2011 semesters. Also, I am looking to make any changes this year so I can start bringing home more money each week if possible. One of the parts I am confused on is what my employer deals with. For example, one answer says allowances are on the W4 which is what I give to my employers, so I am assuming exemptions is totally separate from what my work deals with since it’s my return. If that’s the case I am even more confused because on my paycheck there are two columns (one for federal, one for state) and it lists 0 “EXEMPTIONS”. Are they using the wrong term? Is this really allowances?

For tax return, I normally take my taxes to HR Block, so I am guessing they would know what to do… I just don’t want any huge surprises next year ;-)

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5 Answers



  1. pickmefirstplz on Aug 19, 2011 reply

    claim yourself

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  2. the kid on Aug 19, 2011 reply

    You should claim 0 if you are single with no dependents. One at most.

    You fill out a new W4.

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  3. card-ron on Aug 19, 2011 reply

    Allowances are what you claim on your W4 to determine how much federal income tax to have withheld. Exemptions are what you claim on your federal income tax return for yourself (if you cannot be claimed as a dependent on another person’s tax return) and any dependents you may have.

    Since you are a “recent college grad” still living at home with your parents, the first thing to determine is whether or not your parents can claim you as a dependent this year. If you were a student for at least part of 5 calendar months in 2011, are under the age of 24, and do not provide more than half of your support for the year, chances are your parents can claim you as a dependent. If they can, you should not claim any more than one allowance on your W4.

    If you cannot be claimed as a dependent, you can claim up to two allowances on your W4. Assuming you have no additional income, claiming two allowances should bring you real close to your total tax liability when you file your return. You may get a refund of $ 100 or so, you may owe $ 100 or so, but it will be close.

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  4. the tax lady on Aug 19, 2011 reply

    Each allowance represents about $ 3000 less in pay that is taxed.

    Ignore the house issue until a year after you buy the house.

    For 2011, you graduated and made $ 40K. No one can claim you.

    On your tax return for 2011, you will not be taxed on $ 9500 ($ 5800 standard deduction and $ 3700 personal exemption). The pre-tax health and 401K will not be part of the income.

    You can go to IRS.GOV and look at 1040ES to get an idea of your tax bill. ($ 40-$ 50K is too wild a range). Then use the withholding calculator to estimate how much should be withheld for the rest of the year. Then in January, 2012 change the W-4 back to single/2.

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  5. tro on Aug 19, 2011 reply

    you can find a W-4 calculator at http://www.irs.gov to help you
    if you did not reach age 24 in 2011, and attended school 5 months of 2011 your parents still claim you

    as a dependent your non taxable income is $ 5800, as single person, no dependents, it is $ 9500
    you definitely will not be earning between $ 40 and $ 50K for the remainder of 2011

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