What should i claim on my taxes. I am claiming 0 now.?

Question

I really dont understand the first thing about taxes. I am single, no kids and pay rent. I am claim in 0. But it just seems like there killing me on the taxes. Its nice to get something back in April but i was wondering if i started claiming 1 if it would be much of a difference in my pay check and come april would i owe anything. I make about 500 a week. Thats with all the taxes and taken out already.

Answer 1

What you claim on your W-4 just tells your employer what percentage of your income to withhold for tax purposes. You will still OWE the same total tax even if you chnge your W-4. Changing to 1 from 0 means less will be withheld for you.  How much of a refund do you normally get?  Each increase in 1 withholding "unit" will withhold about $10 a week less for taxes, or about $500 per year.  Do not increase your number to 1 if you do not get at least a $500 refund each year.  Your total tax will be the same no matter what you claim. For an estimate on what you should be claiming, go to www.irs.gov or www.paycheckcity.com and you can try their W-4 calculators.  With your simple situation - no kids, mortgage, a good place to start to learn about taxes is just to print out the 1040EZ form, fill in your numbers, and follow the instructions available on-line. It is very easy to learn about on your own.

Answer 2

The irs offers a withholding calculator.

Take your last paycheck and use it to get a recommendation of how you can change your w-4 for the rest of the year.  

Answer 3

The difference between single 0 ($61) and single 1 ($51) is about $10 per week. That would also be $520 less in your refund, for a whole year.

You make the choice.

Answer 4

It will make a difference. I make about as much except I get paid every 2 weeks. I claim "1" under Federal and "0" under State since Federal taxes more than State and that way I get more in my paycheck right away and I usually get money back or don't owe at the end of the year. But if you reach a certain salary bracket you will owe at the end of the year. I definitely wouldn't go any higher than "1" though otherwise you will probably owe.

Answer 5

Yes, claiming 1 or 2 will make a difference. You will get more in your check. No I dont think it would hurt you at tax time.

Answer 6

It would probably mean around $16-17 more weekly in your paycheck  

Answer 7

The W-4 should have a calculation to help you know what to claim.  I would think that 1 would be okay unless you have a mortgage.