How many exemptions should I claim?

Question

I was under the impression that I should claim 2 exemptions, according to the W4 form (1 for being single and having only one job, and 1 for not being a dependent). However, now I think this may be incorrect and that I should only have claimed 1. This doesn't make any sense!

Answer 1

This will help you decide what to claim and how to find out if enough is being deducted.  http://www.irs.gov/publications/p919/ind...

Answer 2

Two will bring you close to even when you file - either a small refund or owe a small amount.  One will have more taken out, and you'll get a slightly larger refund.

Answer 3

I myself could claim 5, but I claim 0.  I know many people would disagree with me, but I figure that just a little more money being taken every couple weeks does not hurt that much.  Reason why I claim that way because I would rather see one lump sum at the end of the year instead seeing a little more on every paycheck.  But as I said, that is what works best for me.

Answer 4

It depends on how much money you will be making and what other tax deductions you have.  You can leave it at 2 and the worst that will happen is that you could owe a little with your return.

My CPA says you should owe a little rather than letting the IRS hold your money & not pay interest.