early tax question?

[bow4my2]

this maybe something you dont want to say, but just curious how many dependents you guys claim at your employment. Do u claim less because of hopes of a larger return, or less because you need the money now. Also another question. I had a friend you filed a W2 with work and they lost it, he is married and claims 2, but since they lost it, it defaults him to single with no claims, how will this affect him at return time until he gets it fixed--thanks

[CaptainDave]

I'm single w/ no kids and claim zero. They deduct more when I claim zero, over claiming one for myself. I started doing that because they weren't taking enough out when I was claiming one.

As for your buddy...Single status on federal income taxes is the most unfavorable tax status to be in. If they were deducting assuming he was only claiming one dependent, but rather he has two or three, then when income tax time comes, his potential refund should be higher.

[JLively]

He can update his W2 at any time though. His withholding was higher with no exemptions so he should be getting a larger refund, i mean return of the interest free loan that he gave to the government.

[CaptainDave]

[QUOTE=JLively;1189645]He can update his W2 at any time though. His withholding was higher with no exemptions so he should be getting a larger refund, i mean return of the interest free loan that he gave to the government.[/QUOTE}]

That's actually a good point there. Getting a large refund at the end of the year isn't exactly the best thing when it comes to tax planning.

[41Chevy]

The wife and I both claim zero and single. And still only break even at filing time.

[bow4my2]

true. i personally try to not do my tax planning that way nor does he, but hopefully he will have a decent return.I like how you label the return"interest free govt loan--funny-thx-------oh yeah, he will be changing it soon

[rjet]

I know all the financial gurus say dont let the govt use your money to collect interest with but I claim 0 as does the wife.
Is sort of a forced savings emergency fund that I have been doing for darn near my working life. Comes in handy for those few years I actually have to pay a bunch of capital gains taxes.

[SPUD]

You complete a W-4 with your employer for federal tax witholding purposes. Your employer sends you a W-2 with the amounts of earnings, taxes and other information.

Generally, the more dependents you claim on your W-4 the less federal witholdings are taken. The single w/no dependents I believe is telling your employer to withold the maximum amount

I believe for tax planning purposes, you should set a goal to either pay/receive $500 bucks. Enough is held out to satisfy the taxes while you are able to bring more money home and invest it in a higher yielding acct or the market

[bwssr]

to break even or get a small amout back is the prefered way...writeing anouth check SUX

[Barn]

Extra

I have the married at the higher single rate and an extra $25 taken out to guarantee a big refund.

[Throwin Darts]

i try to not receive a refund or have taxes due. i would rather not pay extra through the year and lose the opportunity cost of money by giving the gov't an interest free loan. i have large mortgage interest deductions so i claim 4. i'm single with no dependents btw.

[Heath]

I need to find me a CPA in the Dallas/Plano area. Somebody on TBH gave me a name and a number, but I have misplaced it. If anybody has any recommendations I would appreciate it.

[jgrogers1978]

heath. i use a guy here in mckinney off of 380. hes done us good over the last three years. i can get his number if you want.

[kdenhead]

I'm not a CPA, but here is what i know....

The W-4 is completed by the employee. Employer withholds tax (per tax tables) and remits to IRS. One can claim a different number of dependents on the W-4 than what you actually have. Typically, the more you claim, less tax is taken from your check. Employers must send a W-4 to the IRS if the employee claims 10 or more.

Once you file your taxes (1040), your taxes withheld will be offset against your tax liability. If you get 'aggressive' with the dependents on the W-4, you will pay.

It is best to accurately estimate your tax liability and withhold the proper amount.

[Bilbo]

Single/No dependents for me. That way I get a little of something at the end of the year. I'd still rather make 6 figures and not get anything or have to pay in.