Based on the description, I am assuming that you're talking about what to choose on your W-4 form that determines how much in taxes is withheld from your paycheck. Well, there are two things you should take into consideration.First, the form is for your benefit. You can essentially put down whatever you like. The problem is if you don't have enough taken out of your check, you may be subject to fines and fees when you file your taxes so be careful.Second, in the end it depends on what you want to happen. If you want a big refund at tax time, you can actually claim “0” if that's what you want to do. If you want to have your taxes closer to break even at tax time, then you'll need to go through a two step process:Fill out your W-4 exactly as instructed on the form.After you pay your taxes the first time, see how far off break even you were. If you weren't far off, you're done. If you were farther off than you would like, go to your employer and tell them you'd like to adjust your tax withholding so that it will match up better at the end of the year. They will probably be able to help you do this.
If my employer messed up my tax info and claimed 5 exemptions, I put single claiming 0 on my w-4? what do I do?
First of all, you did plenty wrong. Always check the withholding on your check stub. Depending on how often you get paid, you had anywhere from 12 to 52 chances to straighten it out during the year. Next, you should have kept a copy of your W-4. If you filed a replacement, that was a second opportunity to keep a copy. Ultimately, it is YOUR responsibility to make certain they are withholding from you. If they were using 5 dependents for you, I'm guessing they didn't withhold much. That means you will likely owe taxes when you do your return...again, YOUR responsibility. Trust me, do your return early - don't file it until the due date, but at least DO the return. That way, if you owe, you have until April 17th to come up with the money, but you know how much you owe now. Also, make sure your employer is withholding correctly for this year, and keep watching it. Legally, they cannot refuse to give you a copy of your W-4, but do you really want to press it if you still work there? File a new W-4 and KEEP A COPY! Don't worry about doing that ridiculous calculation on the W-4 - if you want to claim S-0, claim S-0. If they mess it up again, then I would contact the IRS. I'm guessing your employer just didn't want to deal with having to turn over withholding so they didn't take anything out...may be a sign that they've gotten in trouble by getting behind in making tax deposits in the past.
How many exemptions can I claim on my w-4 to have no taxes take out?
Look at last year's tax return. Did you actually pay any taxes? If you got all your money back, you didn't. Look at this year's taxes--the numbers work out pretty much the same if your are claiming your child: 19,000 -8000 head of household. -7000 you and 1 child. 4,000 taxable income 400 tax bill 400 child tax credit 0 tax 600 additional child tax credit xxx EIC. If you don't pay taxes, exempt is allowed.
Claimed 0 exemptions on W-4 Why do I now owe taxes?
When you have pay periods where you have a very small gross income there will be none or very little tax withheld. Therefore, when you combine all your incomes and figure the tax, you could very well owe. You are correct about the 0 exemptions taking out the most tax, but they still won't if you have small income. One solution is to make sure the highest income's W-4 is single 0. This could ensure that next year you won't see a balance due. You always have the option to have an additional amount of tax withheld each pay period. Sorry there is not better news. Laura H – H&R Block – Senior Tax Advisor 5 **This advice was prepared based on our understanding of the tax law in effect at the time it was written as it applies to the facts that you provided.
The short answer is you need to file with Illinois and you need to pay those taxes. While he failed to withhold, the bottom line is you received the money and therefore you owe income taxes and, very likely, Social Security and Medicare taxes on it as well. There's no law that says the employer has to pay the withholding taxes that he failed to withhold as long as you received that money. If you fail to pay your taxes both income and social security and it can be shown that you were an employee, the government might try to collect the taxes from the employer but that's a matter of the government making a choice to go after him, not because you have a right to force him to pay.
Why is my employer not witholding enough taxes when i claim 0 on my w4?
my employer doesn't seem to be taking the correct taxes out of my check. for the first few months i worked at my job they did. ($130 for the first 3 months withheld for state taxes) but now for the full 12 months of 2011 they withheld only $103, for the FULL year! also i noticed after going back over my pay stubs (which they had stopped mailing and I had to request copies of and weren't getting currently as I was being paid) that the federal withholdings were unusually low as well, sometimes only totalling 60 cents. granted i only work 30 hours a week give or take at $9 an hour BUT i have been in this bracket a few years now and never had this problem before. when i asked about it i was told i was "probably not making enough to be taxed". well, i wish someone would tell that to the state because they sure saw it differently and we just paid them $620 in taxes. taxes that i wanted deducted from my check DURING the year. that is precisely why my husband and I claimed 0 so they will take taxes out throughout the year and we won't be hit owing several hundred at the end. also, they told me i would need to resubmit my w4 to make sure i am claiming zero. but zero is still zero and that's what is on my w4 and my w2. they told me i should request an additional flat amount withheld each check but i wouldn't know what to take out additionally as it is normally based on your earnings and they usually just withhold a percentage of that. since my hours fluctuate i don't necessarily want a flat amount held out each check. if this is true that i don't earn enough to be taxed, why was i then still taxed at the end of the year by the state? and why were they withholding so much more the first year i worked there. i can't get a straight answer from anyone at corporate. someone is supposed to return my call to explain it to me (i've been bumped around to 3 people already who sound like they don't understand the way it works themselves and don't sound fully convinced of what they are attempting to explain to me.) i would like a better understanding of it so i know how to handle myself and what action to take when i speak to the next person at payroll about this. i am at a loss and very frustrated as is my husband. thanks in advance -emily
Employer taking incorrect taxes out of my check, what can I do?
Your recourse is constrained. First, you may notify your company that your type W2 is incorrect. in case you're having a no longer hardship-free time with them, then deliver the data (photocopy of the paystub) to their payroll people by using qualified mail. next, you may record a complaint with the IRS. The hows of that i do no longer keep in mind, yet you may. Your company would be fined for generating an misguided W2 - it extremely is the two $50 or maybe it extremely is long gone up some since I did the type of element, even though it extremely is no longer a hefty effective. although, in the journey that your company made a mass mistake and many workers have undesirable W2's, then that $50 effective according to worker provides as much as a pair extreme funds. it would be as much as the IRS whether or no longer they opt for to audit your company. they might, they would not. besides, your company will could difficulty you a sparkling type: a W2C, which will prepare the earlier and after correction. ultimately, you will could record a corrected return with the IRS making use of that W2C you bought out of your company. in case you land up owing them funds, then you definately gets hit with pastime quotes. in the event that they assign you outcomes, you basically prepare the documentation that this grew to become into an company blunders, and that they are going to waive the penalty, yet they not at all waive pastime.
I claim 0 on my taxes but I still have to pay, does anyone know why?
I'll bet that you have more than one job, or another source of income other than your primary job. If you have a part time job, for instance, they will only withhold taxes based on the wages of that job. As the total amount of money you earn increases, you move up into a higher tax bracket. Lets look at the lowest bracket for a single taxpayer, which is earning $0-$7550. The tax rate for that bracket is 10%. Now, the next bracket is for people earning $7550-$30650. Those people pay 10% on the first $7550, and 15% on the amount over $7550. Now, if you had two jobs that earned $7550 a year and only claimed 0, both would withhold just enough federal withholding tax to cover your anticipated 10% tax liability. However, since your total income exceeds $7550, you'll have to pay an extra 5% of every dollar earned on the second job in taxes because the earnings from the second job kicked you into the next tax bracket. Now, this is a generalization, but still fairly accurate. What you have to be VERY careful of is to find out at what income your employer has to start withholding taxes. Below a certain amount, the employer won't even withhold the amount needed for the 10% tax liability! I know this, because I work a weekend job, 16 hours a week making $9.75/hour. My employer is only required to set aside $2 as federal withholding tax! Think that's going to pay my taxes? Only if that were the ONLY job I had! You have to fill out a new W-4 with the employer of your second job and have them withhold more money for federal taxes. I have my weekend job withhold an extra $20 a week for taxes just so I won't owe anything at the end of the year. Figure out how short you were, divide it by 52 and then have your second job employer withhold that much extra every week. That should square you and the IRS.
It’s a two digit field so 99 can be claimed, But expect the be questioned by both HR and IRS for doing so many. You have to Show you are entitled to claim 99.There are W4 Calculator that can help, But a single person who has normal life should be claiming 1 or 2. More if you have kids. Keep in mind if you do not have enough taxes withheld from your paycheck the IRS can fine you interest and under payment penalties for the amount you should have with held last year.
I'm puzzled as to why the IRS would have sent you a letter suggesting that you change your withholding allowances when you say you are only claiming 2. If you look at the worksheet on the W-4 (http://www.irs.gov/pub/irs-pdf/f...), 2 withholding allowances is not unusual for a single person claiming no dependents. The first two lines in fact tell you to enter 1 if no one else can claim you as a dependent, and 1 if you are single with only one job.The IRS normally doesn't send out letters like this unless there's a withholding compliance issue - and that normally occurs when you have significant underwithholding, so that you owe a lot of money, including the underpayment penalty, every year. If you truly don't know why you received this letter, I'd suggest you take it to a tax professional.