Quick W4 form Question

[tinkerbell615]

Please help! DS is filling out a W4 form for his first full time job. He just graduated from college and will be teaching. DH and myself have not filled one of these out for a while.

On the form it asked to use the total number of allowance you are claiming. (1) for yourself and (1) being single and only have one job on the worksheet = (2).

He wants to file single with "0" exemptions so that he does not owe at the end of the year right? He would rather get a return than to owe or break even. Does he answer that question as (2) or can he leave it (0).

Can someone please help with this?

I know we both file married at a higher rate with "0" exemptions, but I do not know how we did it.

Thanks!!

 

[Mrs. Bradbury]

He isn't forced to claim exemptions, so leaving it as 0 is OK. They're just going to tax the heck out of him!

Congratulations to your son; what an exciting time in his life.

 

[tinkerbell615]

He isn't forced to claim exemptions, so leaving it as 0 is OK. They're just going to tax the heck out of him!

Congratulations to your son; what an exciting time in his life.

Wow that WAS quick. Thank you very much!!

So am I safe to say that (1) exemption might be a safe bet for him?

 

[Mrs. Bradbury]

Wow that WAS quick. Thank you very much!!

So am I safe to say that (1) exemption might be a safe bet for him?

You're welcome!

I was a payroll supervisor for years and years and got these questions all the time.

1 should be fine, provided that he doesn't have any other income. That's what trips people up. At the end of the year, the IRS doesn't care in how many ways you made your income, they just add it all up and figure taxes on the whole thing. Then they see how much you've had withheld, and if it's not enough, you owe. That's way oversimplified and completely skips any deductions, but you get the picture. If he has worked anywhere this year, he could go with S-0 until the end of the year, and submit another W-4 in January 2010 with S-1. That's the safest way, but S-1 isn't being a daredevil, either.

If he hasn't worked at all this year, I would definitely go with S-1 or even S-2, because income tax for the whole year based on only 4-5 months of earnings is going to be next to nothing. Unless he's making A LOT of money.

 

[tinkerbell615]

You're welcome!

I was a payroll supervisor for years and years and got these questions all the time.

1 should be fine, provided that he doesn't have any other income. That's what trips people up. At the end of the year, the IRS doesn't care in how many ways you made your income, they just add it all up and figure taxes on the whole thing. Then they see how much you've had withheld, and if it's not enough, you owe. That's way oversimplified and completely skips any deductions, but you get the picture. If he has worked anywhere this year, he could go with S-0 until the end of the year, and submit another W-4 in January 2010 with S-1. That's the safest way, but S-1 isn't being a daredevil, either.

If he hasn't worked at all this year, I would definitely go with S-1 or even S-2, because income tax for the whole year based on only 4-5 months of earnings is going to be next to nothing. Unless he's making A LOT of money.

Okay. So I think I understand. Yes... he has worked all year at other jobs with little or no tax deducted. DH and I have always been surprised at how little tax has been withheld from his checks. Then again, he really has not made a whole lot of money because it has always been part time. I guess we should have him do the S-0 until the end of this year and then maybe change to the S-1.

I am so greatful that you answered my question. I have had so many nice people on here help me with things that I do not understand. I don't know what I would do with out my dis friends helping with all of the many questions that we have had in the last month with him graduating.. loans, etc...

Thanks again!!!

 

[Mrs. Bradbury]

I'm glad I could help. I've gotten so much good information from these boards, it's nice to be able to give back.

 

[P.I. Squirrel]

I totally agree with the previous post. Claim 1 and you'll be fine.

W4's are merely an estimate of income tax witholding. As long as you don't go way overboard on a W4, you're ok. For instance, let's say you claim 'exempt', then make 50 grand. The IRS would penalize you at tax time for witholding far too little.

If you are really that worried with him owing at the end of the year, claim 'single', no dependents, then enter a dollar amount in the 'additional amount to be witheld from each paycheck'. I had $25 extra taken out for the longest, until I was certain I would not owe.

 

[deva]

One additional consideration - will you be claiming him as a dependent this year or will he be claiming himself? You mentioned he just graduated so I was wondering if you are going to claim him for one more year (which means his taxes will be higher) You can view the withholding tables at IRS.gov. Generally speaking though the withholding tables match up pretty well to the tax tables. You need to be careful if you have a lot of low paying jobs, dual incomes or major sources of other income.

 

[mum4jenn]

I have always claimed ZERO. Tha way it does not hurt as much at tax time.