- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Can someone give a crash course on "Allowances"
Posted on 8/4/14 at 1:19 am
Posted on 8/4/14 at 1:19 am
What does it mean?
How do I decide what the right number is?
If I claim more than I actually have am I guaranteed to owe at the end of the year?
What actually determines how much they should be taking out?
How do I find the sweet spot(or closest to it) so that I get all my $$$ in my checks and absolutely don't owe but at the same time don't get much of a refund?
How do I decide what the right number is?
If I claim more than I actually have am I guaranteed to owe at the end of the year?
What actually determines how much they should be taking out?
How do I find the sweet spot(or closest to it) so that I get all my $$$ in my checks and absolutely don't owe but at the same time don't get much of a refund?
2
Posted on 8/4/14 at 9:07 am to VerlanderBEAST
Allowances are a way of determining how much income tax is withheld from your paychecks. It is based on two things: filing status and number of personal exemptions.
In theory, the system is set up like this: If you choose to be withheld on your actual filing status in number of exemptions (say you are married with two kids, so your withholding is Married Filing Joint, 4 allowances), and you only have one job, and your spouse does not work, you have no other income, and you take the standard deduction, then you should end the year with a very small refund.
The IRS has a calculator on their website that you can input information into, and it will give you a reccomended solution for allowances.
Remember, all withholding is, is payments that go towards your actual tax liability, which is calculated when you file your return.
In theory, the system is set up like this: If you choose to be withheld on your actual filing status in number of exemptions (say you are married with two kids, so your withholding is Married Filing Joint, 4 allowances), and you only have one job, and your spouse does not work, you have no other income, and you take the standard deduction, then you should end the year with a very small refund.
The IRS has a calculator on their website that you can input information into, and it will give you a reccomended solution for allowances.
Remember, all withholding is, is payments that go towards your actual tax liability, which is calculated when you file your return.
Posted on 8/4/14 at 9:24 am to VerlanderBEAST
quote:
What does it mean?
You are allowed to take deductions for dependents on your income taxes, this is how withholding compensates for that.
quote:
If I claim more than I actually have am I guaranteed to owe at the end of the year?
Pretty much, unless you are in a low tax bracket. Even then you will still probably owe.
quote:
What actually determines how much they should be taking out?
I can't speak for the IRS, but the state sends them a chart from what I understand.
quote:
How do I find the sweet spot(or closest to it) so that I get all my $$$ in my checks and absolutely don't owe but at the same time don't get much of a refund?
Experiment or get an accountant?
Page 1 of 1
Popular
Back to top
Follow TigerDroppings for LSU Football News