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Started By
Message
Claiming 1 vs Claiming 0 on taxes..
Posted on 8/25/16 at 11:51 am
Posted on 8/25/16 at 11:51 am
So I am pretty much ignorant when it comes to how to keep as much of my money in my hands instead of Uncle Sams...
How big of a difference is it for me to claim 1 then the current 0 I am at.
I prefer 0 because I like getting that nice chunk back at the beginning of the year, however I am getting anywhere from 37%-40% taken out for taxes... which is just absurd to me.
My question is if I go from 0 to 1 will the weekly increase in my net be more beneficial than getting less back after taxes?
I will clarify anything needed or give more information if I left out anything important.
For an example.
For last week I grossed $5017.00 in labor and was deducted $2,017.39 in taxes. aka 40% (40 ST hours 31 OT hours)
If I were to change from 0 dependants to 1 dependant (myself) how much difference would this make? How much would difference would it make at tax filing time?
Any and all insight is greatly appreciated.
How big of a difference is it for me to claim 1 then the current 0 I am at.
I prefer 0 because I like getting that nice chunk back at the beginning of the year, however I am getting anywhere from 37%-40% taken out for taxes... which is just absurd to me.
My question is if I go from 0 to 1 will the weekly increase in my net be more beneficial than getting less back after taxes?
I will clarify anything needed or give more information if I left out anything important.
For an example.
For last week I grossed $5017.00 in labor and was deducted $2,017.39 in taxes. aka 40% (40 ST hours 31 OT hours)
If I were to change from 0 dependants to 1 dependant (myself) how much difference would this make? How much would difference would it make at tax filing time?
Any and all insight is greatly appreciated.
8
Posted on 8/25/16 at 12:08 pm to 3andOut
Why give uncle sam an interest free loan when you can take that money and put it to work for you?
Switch to 1, take the increase in take home pay and put it in a Barclays dream account that gets you a whopping 1.05% interest. It is clearly more beneficial for you than not. That is 1.05% you weren't getting before.
Here is a calculator you can use to estimate the change
LINK
quote:
My question is if I go from 0 to 1 will the weekly increase in my net be more beneficial than getting less back after taxes?
Switch to 1, take the increase in take home pay and put it in a Barclays dream account that gets you a whopping 1.05% interest. It is clearly more beneficial for you than not. That is 1.05% you weren't getting before.
Here is a calculator you can use to estimate the change
LINK
Posted on 8/25/16 at 12:59 pm to 3andOut
There are specific rules that employers must follow for withholding. They are contained in Publication 15. The amounts to be withheld are based on information you provide via Form W-4.
You can compare the effects of an additional withholding allowance for your payroll period by referring to Publication 15-A.
You can compare the effects of an additional withholding allowance for your payroll period by referring to Publication 15-A.
Posted on 8/25/16 at 1:08 pm to 3andOut
quote:
For last week I grossed $5017.00 in labor
Brag is subtle
Posted on 8/25/16 at 1:13 pm to 3andOut
For last week I grossed $5017.00 in labor and was deducted $2,017.39 in taxes. aka 40%
Are you including insurance/retirement deductions?
Are you including insurance/retirement deductions?
Posted on 8/25/16 at 2:57 pm to 3andOut
Just make sure when you get married and have a kid you don't claim 1 while your spouse claims 1.
That's 2 and when you file you only have 1.
We did this and got fuuuuuurked.
It was her fault if you ask me
That's 2 and when you file you only have 1.
We did this and got fuuuuuurked.
It was her fault if you ask me
Posted on 8/25/16 at 3:34 pm to 3andOut
You don't get any interest on the money you let them hold all year. I prefer to pay $500 to $800 (under the penalty and interest threshold) every year than get any back.
Posted on 8/26/16 at 8:40 am to 3andOut
quote:
however I am getting anywhere from 37%-40% taken out for taxes... which is just absurd to me.
Welcome to the real world
Posted on 8/26/16 at 3:11 pm to 3andOut
Put a 5 or 6 on that bad boy. See what you can get away with until tax time.
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