Filing W4s

[rancid240]

So i just started my first job...and as I understood, the lower the number you put, the least they take out in taxes. So I put a "1". Throughout college I would put "exempt", but I figure now that I am out, I need to put something there. Well anyways I got my check today and they took out 27% total for taxes :eek2: Is this normal? Or should I refile...single and no one will claim me as a dependent.

[Phlip]

Yep, you got it backwards, the lower the number you put, the kess "dependents" you have, and therefore can afford more in taxes to be taken from your check with the expectations that you might get a larger return come next year... Me? I make good money and leave that sumbitch at a 1 because I don't mind going ahead and paying the taxes up front, then getting a better return. People at my job put it up to a 9 and bitch when they have to pay through the nose every year.

[mjjstang]

yah when you pay more taxes and get more back at the end of the year, that means you let the feds make money off of you during the year, fuck that

[RJF]

Go to the source:

http://www.irs.gov/individuals/article/0,,id=96196,00.html

This is usually pretty accurate if your input data is good.

You want to minimize your refund at the end of the year, so you can earn the interest instead of the IRS. Just make sure that you have enough withheld, otherwise you'll have a nice surprise come April 15 and have to write a check instead of getting a refund.

[rancid240]

Thanks for the page, for me it recommended I put 5 allowances, otherwise I would pay more than $1800 over for these last 4 months!