Claiming zero allowances on W4 form

[jtvang125]

I just did my tax return and I owe about $2000 back. I initially claimed 2 allowances but the guy who did my taxes recommended me to change it to 0 or have them withhold about $50 per paycheck so that next year I won't owe anything or not as much. Can I actually claim 0 allowances like he said or should I just have them withhold more?

Oh and I'm single.

Bare with me cause I suck at teh taxes. I claimed 2, 1 for myself and another 1 for me being single and one job. I have only one income which is my current job. I made about $48k during 2005. During the tax filing I had him enter the interest I paid for my school loans but they weren't much, only $130 cause the interest on the loans didn't start til late in the year.

 

[JS80]

that doesn't make any sense.

 

[GeneValgene]

bad advice...claim max allowances

-edit-

if you claim 0, the gov't withholds more, which is dumb. you are basically giving the gov't an interest free loan. might as well claim at least 2 allowances, and owe money at the end of the year

 

[QED]

Yep, something is wrong with this picture. If you are single and make an ordinary salary, and don't have any untaxed sources of income, you shouldn't end up owing $2000 in taxes at the end of the year.

Are you sure you did your taxes right?

 

[huey1124]

Yes, you can claim zero allowance. When I was much younger, I used to do this to maximize my returns (I wasn't disciplined enough to save back then). You should end up with sizable returns, but as others will tell you, you are giving Uncle Sam an interest-free loan.
However, for compulsive gamblers/shoppers, claiming zero allowance might not be a bad idea.

 

[GeneValgene]

Originally posted by: MathMan

Yep, something is wrong with this picture. If you are single and make an ordinary salary, and don't have any untaxed sources of income, you shouldn't end up owing $2000 in taxes at the end of the year.

Are you sure you did your taxes right?

yes, taht is strange. what other income did you have?

 

[JS80]

Originally posted by: GeneValgene
bad advice...claim max allowances

-edit-

if you claim 0, the gov't withholds more, which is dumb. you are basically giving the gov't an interest free loan. might as well claim at least 2 allowances, and owe money at the end of the year

i don't think you read his post thoroughly, or you didn't really understand it.

What doesn't make sense is that he's single, claimed 2 on his W-4 yet still owed $2k in taxes. We need more info (your income, investments gains, etc).

 

[EKKC]

i rather handling my money and owing them come tax time than to let them feds get my cash!!!

 

[JS80]

I have a feeling it's interest income. My gf owed money with 2 claimed because she had interest income + dividends.

 

[huey1124]

Originally posted by: MathMan

Yep, something is wrong with this picture. If you are single and make an ordinary salary, and don't have any untaxed sources of income, you shouldn't end up owing $2000 in taxes at the end of the year.

Are you sure you did your taxes right?

I think you will owe tax if you are single and claim 2 allowances. My ex used to owe money by claiming 2, but when she adjusted it to 1, she barely ended up getting refund.

 

[GeneValgene]

did you sell off any stocks

are you sure the guy who did your taxes is not ripping you off?

 

[GeneValgene]

Originally posted by: huey1124

Originally posted by: MathMan

Yep, something is wrong with this picture. If you are single and make an ordinary salary, and don't have any untaxed sources of income, you shouldn't end up owing $2000 in taxes at the end of the year.

Are you sure you did your taxes right?

I think you will owe tax if you are single and claim 2 allowances. My ex used to owe money by claiming 2, but when she adjusted it to 1, she barely ended up getting refund.

yes, but if you are single, $2000 is quite high...unless you have some other income

 

[huey1124]

Yes it is quite high, but it also depends on how much the taxable income was (ie. tax bracket).

 

[bigrash]

I deal with this all the time and that's not strange at all.

It's highly normal that if you are single and you claim 1 or 2 then you will owe a lot in taxes. the govt takes so much taxes from you if you have a full time income and you're single. the best thing to do is to claim 0 so that you get back, or to claim 1+additional few bucks so that you dont owe anything.

 

[GeneValgene]

ok, how about do this...give us your taxable income, and tell us how much money you paid in tax total

make sure it makes sense

 

[GeneValgene]

from your story, it doesn't add up

unless your company wasn't witholding the right amount

 

[axnff]

Something has to be goofy. Either your employer didn't withhold correctly, or you had a lot of non W-2 income (interest, investment income, gambling winnings, self-employment, alimony, that kind of stuff) that increased your tax liability but did not have automatic withholding. A single person with <$150k annual income all through W-2s and salaried should not have to pay more than about $200 when claiming 2 allowances....

 

[MixMasterTang]

How much does your W2 say you paid in federal taxes?

 

[lytalbayre]

I'm single etc. A few years back right out of college I was claiming 2 and I ended up owing as well. Since then, I just claim 1 allowance and I usually get back 300-400 on a return... this puts me in the middle somewhere...

I would recommend either changing to 1allowance or saving more throughout the year.

Also, $2K seems like a lot if you only claimed 2.

 

[GeneValgene]

Originally posted by: MixMasterTang
How much does your W2 say you paid in federal taxes?

yes, this information would help

maybe the guy doing your taxes is trying to jack you

 

[altonb1]

I don't think $2k is that extraordinary, but are you sure state taxes are not being lumped in here, too?

 

[Chiropteran]

why do you claim 2 allowences? I thought you claim 1 for yourself, and that is it unless you have another dependant?