What Is The Best Number Of Exemptions To Claim When Doing Your Taxes?
I am the only one bringing in income in my family. I have a stay at home wife and 2 infant boys. I never got how this worked. I don’t make much money (military) and I definately want to avoid paying in at the end of the year. So what’s the best way to go?
With the information you supplied, you will be claiming 4 exemptions on your tax return. If you are wondering how many to claim on your W-4 form, the rule of thumb is to claim the number of exemption on that form as you would on the tax return.
You probably won’t be owing at the end of the year if you do this. You will also receive child tax credit to reduce your taxes that were calculated on your taxable income. Also, depending on how much you earn, you may be eligible for an earned income tax credit. Your may be able to claim an extra exemption now to give you a little more in each pay check and you still could have a refund. There are calculations that are involved with that determining the additonal exemptions you may claim.
There are certain situation where your income may be tax free seeing that you are in the military. If you are in a war zone, all combat pay should be tax fee. I’m sure your branch of service will inform you of that.
Thank you for protecting us. I pray for the military everyday that we could help resolve the problems in the Middle East and that our troops can be safe at home soon. God Bless you, your family & the USA.
claim insanity
You have four allowances for the four people, plus can claim another 4 on your W-4 because of the child tax credit for the two babies. That would be 8, but if you want to be very safe at not owing, claim 7 or even 6.
When you actually file your tax return itself, you’ll have four exemptions. The child tax credit will even out for the additional allowances on your W-4.
You should probably be claiming 4 or 5 allowances for withholding purposes. That will leave you with a small refund at the end of the year and the largest paycheck possible during the year.
The way you could claim more than 4 exemptions is if you have other things you can deduct, like medical expenses, real estate taxes and interest. The goal is to come as close to even as you can. You don’t want to pay, but you don’t want the govt to have your withholding money all year interest free, either.
Sounds to me like there are a total of 4 exemptions here. You don’t want to lie to uncle sam, you will definitely get audited. See Publication 17-everything you want to know is there – in regards to taxes and what you can deduct and what is not allowable on your return.