Question about Taxes

Discussion in 'Credit Talk' started by C, May 2, 2000.

  1. C

    C Guest

    I know that this has little if anything to do with credit and so on, but alot of people who come here seem to have expertise on fairly similar matters as well...or if nothing else, can point me in the right direction to find what I'm looking for.

    I work. Don't we all? But the thing is that I am only going to work half the year, since I'm returning to college this fall. I'll be lucky to make $8000 or so. Right now, I claimed a 1 on my employer w-4 form. Since I know that I'll be paying almost no tax and any that I do has already been taken out of my paychecks already, can I claim a higher number? I really only fit the criteria to claim a 1, but is it illegal to claim a 2, 3, or 4 if you're not really entitled to it? Any thoughts would really be helpful. Thanks.
  2. J. Edgar

    J. Edgar Well-Known Member

    If you are filling out a W-4, you may add extra exemptions based on your estimate of what your total tax liability might be. There is a worksheet on the back of the form.

    There are several reasons why someone may claim extra exemptions. The most common is large itemized deduction for medical expenses, charitable contributions, state and local taxes, and especially mortgage interest.

    It is your responsibility to make sure that you have the proper amount of tax withheld.

    If you are only going to make about $8000 this year, you will owe very little tax anyhow, so you probably wouldn't have a penalty assessed in any event.

    You can put up to 10 exemptions on your w-4 without it being scrutinized by the IRS. If you claim more than 10, the IRS may require your employer to file the W-4 with them, but since the situation involves a small income, it probably wouldn't come to that.
  3. creditwork

    creditwork Well-Known Member

    Excellent. It is funny how people lend the government money every year. You should calculate your W-4 number to have to pay the least amount of tax at filing time or receive the smallest refund possible.

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