[vanity] need advice on new job paperwork (w-2 forms)

[stuck_in_new_orleans]

question that maybe someone can help with. If someone is in college and has a part-time job...is it smarter to claim a lot of excemptions?

Also, does claiming a lot of excemptions mean that you get less taken out in taxes?

[Bahbah]

What kind of exemptions do you have in mind. You can certainly claim yourself. Do you have dependants?

[hole_n_one]

Also, does claiming a lot of excemptions mean that you get less taken out in taxes?

You wanna field this one?

[McGavin999]

Yes, the more exemptions you claim, the less will be taken out of your check. If you figure at the end of the year you will owe no taxes, then claim more exemptions. Another thing to take into account is whether or not you will be claimed on your parents taxes as a dependent.

There is a worksheet attached to your W-4 (the withholding form) that will help you calculate the number to claim.

[stuck_in_new_orleans]

no dependents, but cant you claim a lot of exemptions anyway and then it takes out fewer taxes out on your paycheck but then you get that money taken out back when its tax time?

[dakine]

Exemptions? File? Taxes?

that is so 1990s....

[ozaukeemom]

There are a lot of variables involved. If you do the worksheet on the W-4, it may seem like a lot of exemptions. Keep in mind that a part-time jobs means a lower gross so a lower amount withheld. At the end of the year it can bite you. See if you can figure how much you should make and check against 2004 tax liability. It will not be the same but it will give you a rough idea of what needs to be withheld. If you believe you will get everything back and no tax paid, you may be able to claim exempt. Ask your accountant.

[stuck_in_new_orleans]

Yes, the more exemptions you claim, the less will be taken out of your check. If you figure at the end of the year you will owe no taxes, then claim more exemptions.

So you can make up any number...like 9 exemptions?

[ozaukeemom]

Depending on how much you earn and what credits you receive, you may get more back than you paid in. There is earned income credit and the education credits. If you are claimed on your parents' return, then you cannot get the education credit, I believe. And, if you are under 25, no EIC. That is, if I remember all of this correctly!

[Bahbah]

but cant you claim a lot of exemptions anyway and then it takes out fewer taxes out on your paycheck but then you get that money taken out back when its tax time?

Well, simply stated, you owe a certain amount in taxes based on your income and your exemptions. If you pay in more that you owe at the end of the year, you will get a refund. If you declare "a lot of exemptions" (mind you, there are rules about what you can declare) to which you are not entitled, it is more likely that you will end up owing the government.

[The_Reader_David]

The goal in claiming exemptions is to get the amount withheld to match the amount you will owe in taxes.

Generally one wants to claim as many exemptions on your primary job as there are deductions (yourself, spouse, dependents), and zero exemptions on any second jobs (or on your spouse's job).

The exceptions to this would be

1. if you know you have enough itemized deductions to drop your taxes as much as another dependent would (in which case claim one more for each amount of deductions adequate to drop your taxes by the equivalent of another dependent).

or

2. if your wage income fluctuates and your employer as a result over-withholds during the 'high' periods leading to your getting huge refunds on
a regular basis (in which case claim an extra exemption)

The downside to cutting your withholding by claiming lots of exemptions is that our tax code is set up with enforcement provisions for the forced loan to the government which withholding represents: if you have too little withheld, they slap a penalty on the 'underpayment'.

[.38sw]

Sure, make up any number you want. 15. Whatever. Then, if you owe the gov't money when you file and didn't have sufficient withholding during the year, then not only do you get to pay what you owe, but you get to pay penalties. Cool, huh?

[McGavin999]

You must be sure you will owe no taxes.

If you look on page 2 (the back of the form W-4) it will show you how to figure out the number to claim based on your expected tax liability. Just remember, if you owe more, and haven't had enough withheld, they will penalize you.

[hole_n_one]

If you claim anything over 400 exemptions, you should easily clear a 6 figure annual income.

[jocon307]

"So you can make up any number...like 9 exemptions?"

Above a certain amount the number must be reported, at least that's what I was told years ago. Definately follow the worksheet on the form, to be on the safe side, then take one less than you can. Believe me, you don't want to have to write a check next April.

[The Other Harry]

question that maybe someone can help with. If someone is in college and has a part-time job...is it smarter to claim a lot of excemptions?

Generally speaking -- and I have worked at and managed many businesses -- it makes no difference how many exemptions you claim. That's up to you.

Also, does claiming a lot of excemptions mean that you get less taken out in taxes?

Yes.

But the exemptions need to be legitimate. The last thing you want is to be accused of tax fraud.

Talk to an accountant. Really.

[restornu]

Unless you are real good at saving in the bank and not given in to temptation I would not do this!

When we paid them head of time,it is said they make an interest off of your money meaning you have paid more!

Citzens should continue to have debates over the Flat tax or going to a Sales tax.

Forbes Flat Tax

Boortz FAIR (sales) Tax

If this does not occur soon citizens should choose to pay the IRS bill monthly just like the rest of their Bills we have than the citizen would have their eyes open and demand representation for things paid for!

For now we are numb to what they take and ignorant to what they do with it. it really in most cases our tax dollars become their "Elected Meal Ticket" to stay in office.....instead of being there on the merits they earn.

An in most cases those tax dollard go to buy other votes from non payers or illegals or unfriendly nations who want favors from the elected offical who sold the tax payers out!

Such as the case with Pres.Clinton in return for fund rasing helped Red China and other rogue nations in getting their hands on our blue prints and material and tutoring!

So in the future should the nation elected a Benidict Arnold they have little wiggle room to entice with our tax dollars!

Also each state should be treated according to the electrol college they have

Pork barrel and corruption would be more obvious!

This way illigals would have to pay their way too!:)

WE will always have to find tune!:)

[restornu]

Book Description
Neal Boortz and John Linder VERSI0N


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[restornu]

Book Description
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A facted filled call to action, which Steve Forbes will use to lobby the President and Congress for real reform.

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