What if claim 6 on my W-4 on line 1, I rent, I earn 55k, any advice?

Question

What if claim 6 on my W-4 on line 1, I rent, I earn 55k, any advice?

Answer 1

i'm assuming the "6" you claim is in regards to 6 dependents, which you could do and have less income tax taken out monthly, putting more money into your hands each month. Keep in mind, if you end up having to pay taxes at the end of the year (because you didn't have enough taken out over the course of the year) you could face some (minor) penalty. By claiming say, just 1 dependent (you) you will possibly have more than needed being deducted and have a refund coming, which is a way to force yourself to save, but you'll have less money to work with each month. All in all, it depends on what your situation is when you do your taxes--do you have legal deductions to justify claiming 6 dependents? If not, you could end up with the IRS mad at you and be facing some financial penalties. Hope i helped at least a little. Maybe call the IRS and ask them? I've found them to be polite when i've called them in the past. Good luck!