should i claim 0 or 1 on w4 taxes?
its just me and in college. last job i had i had a ton taken out, but all previous jobs ive had not much taken out. what should i put. id rather have more in the check left alone rather than takenout but i also dont want uncle sam knocking on my door. what to do?
- Anonymous1 decade agoFavorite Answer
If it's just you, and you claim 1, which is what you should claim in that case, you'll do just fine.
The only thing that could mess you up would be if you came into a lot of extra unexpected money for some reason. You know, you won a large amount of money on the lotto, or a great uncle left you a lot of money. Those extra dollars would change your gross income numbers considerably and you'd need to look at that and make arrangements to pay taxes where applicable to avoid tax penalties at year end. No one will come knocking on your door. They prefer to wait, and charge you a penalty. You know, there's no money in knocking on doors, but there is in charging penalties. That's all that would happen.
One way to figure out whether or not you're on target (or at least close to where you want to be in terms of paying income taxes) is to calculate your taxes for the coming year using last years tax forms. In other words, just plug in this year's projected numbers (for 2008) in last years forms (for 2007). Things don't change that much from year to year, so the results you get will be very close to what will be owed. And if they are off, the difference will be very minor, not enough to trigger any penalties.
Not sure about this, but I think you can be off by close to twenty percent without triggering any penalties.
As for how to easily and inexpensively figure out, or project, how much your income taxes will be for this year, you can use income tax software such as the TaxAct software package. Check out www.taxact.com for details.
I've been using the package every year now for about five years. I like it, and it's really cheap. As a new customer, you can go to the www.taxact.com website and get the Federal Tax completely free, and if you also need State Tax software, because you don't live in a tax free state, I believe that will cost you ten bucks. It's a great deal, in my opinion, and once you've downloaded the software to your PC, you can go in and change the numbers you've entered at any time for it to recalculate your taxes based on your new numbers.
I'm retired, and my situation is such that I receive income from a pension, and also some interest from saving. Nothing complicated. But, in a couple of years, I'm going to also start receiving social security benefits, so that will change my income tax situation a little. Every year, after figuring out my taxes, I also go in there and plug in numbers that represent what I believe would be my social security benefits should I decide to start receiving right away. That quickly and easily shows me what my tax situation would be if I wanted to make that change in my life right then or in the near future.
Hope you won't think, I'm a sales person for TaxAct. I'm not. I'm really an IBM retiree. Just discovered TaxAct on the internet one day, tried it, and liked it. And because it's a good deal (cheap), I decided to continue with it. As a repeat customer, my current cost to do my taxes each year, is $17.00 and I think that a good deal. Well, it's actually $20, but you get three bucks off if you order early. Ordering early doesn't cost you early. Your credit card isn't charged until the product is available each year--usually late December or early January. Sharing this info with you in case you want to take advantage of it too.Source(s): http://www.taxact.com/
- Time LordLv 51 decade ago
As a rule of thumb, always claim one less than what you have.
So if you're single claim 0, if you have 3 in your family claim 2.
This way you should never have to pay and should always get something back.
- Carefree Alpaca!Lv 41 decade ago
I would claim 0 on your W-4.
It does take out more, but you're almost guaranteed to get a return. Think of it as a savings account that relieves stress...
- JudyLv 71 decade ago
If you are a dependent, claim zero. Otherwise claim 1.
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- 1 decade ago
You should claim zero, they will take more out, but then again think about it as a mini savings plan, depending on how much you make, you will get some or all of it back, especially if your in school and you will feel better getting money back than have to pay it back at the end of the year..... I do!!!
- Anonymous4 years ago
Thats a good question and I hope you will find some valuable answers
- GiddyupLv 41 decade ago
the person (nancy) said exactly what I was going to tell you... My hubby and I have done it that way for-ever...
Works out better in the end.
- 1 decade ago
I think you'll be safe if you claim one.