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6 Answers

Taxes, Clamining 1 or 0 take out less money?

Asked by: lpliskin 2011 views YA Discussion

I have been clamining 0 on my taxes and noticed they are taking ALOT out… If i claim myself (1) will they take out less during the year and in return get less back at the end of the year?

6 Answers

  1. mrreliable3599 on Mar 19, 2012 Reply

    That’s correct.

    It’s a good idea to have less taken out and keep that money in your pocket paycheck-to-paycheck. You’ll get a smaller refund, but don’t end up like the masses who send in way too much, then get desperate to get their overpayment back at tax time when the IRS starts having their six or eight week delays.

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  2. Bash Limpbutt's Oozing Cyst© on Mar 19, 2012 Reply

    The higher the number of allowances that you claim, the less tax will be withheld. The less tax that is withheld, the smaller your refund will be, all else being equal.

    Most single taxpayers that cannot be claimed as a dependent can safely claim 1 allowance. If you are OK with possibly owing a bit when you file, typically less than $ 100 or so for most folks, you can claim 2 allowances. Personally I’d rather owe at tax time than get a refund as I hate lending the government money interest free.

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  3. Bobbie on Mar 19, 2012 Reply

    Sounds like you are getting a good understanding of how this process will work out for you for the next tax filing season.
    Yes you do have it correct in your above statement JUST be very careful so that you do NOT end up having enough withheld and end up having to send a payment when you do fill out and file the 2012 tax year income tax return during the 2013 tax filing season for this purpose.
    Hope that you find the above enclosed information useful. 03/19/2012

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  4. chatsplas on Mar 19, 2012 Reply

    The MORE allowances you claim on your w-4, the LESS taxes you will have withheld
    How much you get back depends on tax situation not disclosed in your posting
    There are tax calculators at http://www.irs.gov, Jackson Hewitt MyTaxManager, Block and Paycheckcity and other places on web
    Generally it is good to take fewer allowances on w-4 than you are entitled to, UNLESS you receive large refundable credits (EITC)
    Even better, would be to put the extra money into the 401K and save for your future
    Contributions to 401K REDUCE your taxable income–just don’t touch the $ $ until age 59 1/2

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  5. Jacqueline on Mar 19, 2012 Reply

    If you are claiming allowances on your tax return, it makes sense to claim them through your payroll check too. Do not wait the time you file your tax return to claim your refund, Your money needs to be available when you earn it not a year later.

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  6. tro on Mar 19, 2012 Reply

    yes, filing 0 on your W-4 takes the maximum at that gross and your status
    go to http://www.irs.gov and search for the W-4 calculator to help you

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