I was asked about dependants and I didnt know if I was supposed to put 1 or 0.
I never worked at an actual place before so I dont know anything about these forms. I was always a self employed web designer since I was very young.
I put 1 but I am not sure if that was my best option. Do I lose money by choosing this option and would I get more with 0?
Feb 19, '13
There are instructions at the top of the W4 (I assume you mean W4 by what you describe as I'm not familiar with a W5)form for you to determine what is the best answer for your particular situation. We absolutely cannot answer that for you. If you are still unsure, consult with a licensed CPA or tax preparation professional (as in one authorized by the IRS not necessarily someone trained by H&R Block as a supplemental job).
The form here: http://www.irs.gov/pub/irs-pdf/fw4.pdf
It's pretty clear. There are also salary estimators that you can use to figure out what would be of most benefit to you without having you owe taxes (and possibly penalties) for not having enough withheld from your regular paycheck.
Feb 21, '13
In reality you can put whatever number you want on that withholding form. I'm single with no children and, in the past, have claimed 9 exemptions on the form in order to take home all of my paycheck. However, you will owe money to the IRS every April if you do this.
You can also claim 0 exemptions, which will result in much of your earnings being withheld, but often generates a refund check when tax time comes.
Apr 21, '13
You get the least with zero. You can put any number you want on their, but when you go to do your taxes, if you owe too much you will be penalized by the IRS. If you are single, it's pretty safe to go with 1 or 2.
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