How many dependents do i claim?

Question

Ok, I have one child.. so I originally thought that I only claimed 1. Now, when filling out the paper, because I am a single mom, (thats 1), because I have only 1 job (that made 2) because I have a daughter (that made 3).. well basically it ended up showing that I have 5 in that dependents part. so, now since then, I have had maybe $20 in federal taxes taken out of my pay.. this is since the beginning of the year..

am I going to be screwed when tax time comes? Are they going to say that I owe when tax season comes? I dont mind changing it to only one, as I only have one child, but when I filled out the forms, they give you 1 for claiming yourself, 1 for each dependent (up to a certain amount) and so on..

not sure if this makes sense, but any expertise would be greatly appreciates!!

Answer 1

You should be ok claiming 2.  Without knowing your income level it is hard to tell you.  You can claim Head Of Household on your return.  This is a higher filing status amount than Single.  You may get Earned Income Credit if you earn under, I think its, $40,000.00 per year.  You can find the exact amount at the IRS web site www.irs.gov.  Earned Income Credit is a refundable credit that will help you pay you taxes if you don't withhold enough.

Answer 2

You are talking about your W-4 form - those are allowanes, not dependents, and you can have a lot more allowances than you have dependents.

Unless you are making a ton of money, you should be OK - you will have little if any income tax liability, and shouldn't owe when you file, and might even end up with money back if you are eligible for an Earned Income Credit.

Answer 3

This sounds correct to me.  Each allowance will decrease your federal tax withheld by about $500 per year if you are in the 15% tax bracket, and for your child you will get the $3400 exemption, plus $1000 child tax credit, so having 3 allowances for your child is sensible, and 2 for yourself since you only have 1 income.  What is your total that you expect to make for the year?

In our case, my husband only works, I am a stay at home mom, and we claim 10 allowances and we still receive a large tax refund due to the $1000 per child tax credit. You can also go to www.paycheckcity.com and use their W-4 calculator, but I believe it is the same as www.irs.gov.

Answer 4

yeah you are going to get hit big when tax time comes. i would recommend going to one or two if you can afford it. it will pay off in the long run.