W-4... Should I claim 0, 1 or exempt?

Question

Hey everyone. I'm 16 and I recently started working. When I filled out my paperwork under W-4 I circled "0". What does this mean? What does 1 mean, and what does exempt mean? I heard if I pick exempt, they will stop taking taxes or deductions out of my paycheck, so I'm tempted to switch. I don't know if this is legal. I really have no clue what any of this means so if someone could brief me and give me a clue as to what my best choice would be that would be great. I did not work last year and I should make about 2,500 to 3,000 dollars this summer without taking out taxes if this helps at all. (I don't know if any of this makes a difference). Alright, thanks so much for any help or input in advance!

Answer 1

If you will make only about $3000 in 2008 as wages, you will not owe any federal tax. Social security tax and Medicare tax is deducted at a fixed percentage and does not depend upon what you put on your W4.

You should claim 2 or 3 allowances.

Read more about the allowances you should claim on W4: http://taxipay.blogspot.com/2008/02/fili...

Answer 2

As long as your parents are claiming you as their dependent and you don't have any children, you'd always just claim "0"

The government is going to tax you one way or another, so I suggest you just go ahead and let them take it out now by claiming "0" instead of exempt.

please answer--http://answers.yahoo.com/question/index;...

Answer 3

Claiming   0  means that govt. will take out more money from your check.  Claiming   1 they take out a little less. Exempt mean no money taken out. But not a good option.For you   1 exemption is the way to go. You don't want to get money back after filing income taxes. So many stupid americans claim(0)    and get a bundle of money back. It's like lending the Govt. money with no interest.No a very bright idea. And their response to this is that is the only way to save money.. Which means they don't have their life in order. Nough said. Good luck

Answer 4

I would suggest you use zero, because you will not be able to claim yourself as an exemption.

This is because your parents can claim you as a deduction.  Whether they actually do or don't is irrelevant...no matter what anybody tells you on this site.  If they can claim you, you can't claim yourself.

Claiming zero will result in slightly more taxes being withheld, but it will also ensure that your tax liability when you submit your return will be minimal.

Answer 5

I remember someone telling me which one will s***w you over but I can't remember what it was... SORRY!

Answer 6

Exempt means that you are not dependent and no one can claim you. Do you live with your parents? If so, ask them if they list you on their W-2.  If they do not claim you then you should circle 1. Even if you are single, you have to claim yourself. If this does not make any sense check out their site:

http://www.irs.gov/

This should help you to answer your questions.

Answer 7

They'll still take out 7.65% for social security and medicare no matter what you put on your W-4.  If you are sure you'll make under $5950 for the year, you won't owe federal income tax so could claim exempt.  If they aren't taking anything out for federal income tax anyway, it won't matter.  If they are and you leave your W-4 at zero, you'll get the amount that's withheld for federal income tax refunded to you if you file a return next year.