How much should I claim on my W-4?

[Nutdotnet]

Single 24yr old male, making just over 42/yr, no dependents.

I'm currently claiming zero. A "W-4" assistant @ paycheckcity.com said to claim 2 which would give me an "extra" $62 per paycheck.

I'm trying to avoid PAYING taxes in April, but could really care less about getting a refund.

 

[DivideBYZero]

$8

 

[KLin]

Originally posted by: Nutdotnet
Single 24yr old male, making just over 42/yr, no dependents.

I'm currently claiming zero. A "W-4" assistant @ paycheckcity.com said to claim 2 which would give me an "extra" $62 per paycheck.

I'm trying to avoid PAYING taxes in April, but could really care less about getting a refund.

It would give you extra money each pay period, but you may end up owing the state and feds money if enough wasn't taken out to cover the amount of tax you owe. I claim 0 and both fed and state because I just don't want to deal with having to pay out money.

 

[OdiN]

Just leave it at zero and take your refund. I would rather get money back than have to pay it.

 

[beyonddc]

Originally posted by: OdiN
Just leave it at zero and take your refund. I would rather get money back than have to pay it.

Agree

 

[spidey07]

Originally posted by: OdiN
Just leave it at zero and take your refund. I would rather get money back than have to pay it.

suit yourself. but you are throwing away money that way.

I'd trust the paycheck assistant tool. Just make sure to include any deductions you will encounter.

I claim 8, but have a boat load of deductions.

 

[OdiN]

Originally posted by: spidey07

Originally posted by: OdiN
Just leave it at zero and take your refund. I would rather get money back than have to pay it.

suit yourself. but you are throwing away money that way.

I'd trust the paycheck assistant tool. Just make sure to include any deductions you will encounter.

I claim 8, but have a boat load of deductions.

Why am I throwing money away? I get that money back in Feb.

 

[GeneValgene]

Originally posted by: beyonddc

Originally posted by: OdiN
Just leave it at zero and take your refund. I would rather get money back than have to pay it.

Agree

you are just giving the government a free loan

i'd rather maximize the money i take every paycheck, then give back what i owe at the end of the year

time value of money

 

[KLin]

Originally posted by: OdiN

Originally posted by: spidey07

Originally posted by: OdiN
Just leave it at zero and take your refund. I would rather get money back than have to pay it.

suit yourself. but you are throwing away money that way.

I'd trust the paycheck assistant tool. Just make sure to include any deductions you will encounter.

I claim 8, but have a boat load of deductions.

Why am I throwing money away? I get that money back in Feb.

You could use that money and invest it and gain interest on it instead of giving it to the feds interest free for the year.

 

[OdiN]

Originally posted by: KLin

Originally posted by: OdiN

Originally posted by: spidey07

Originally posted by: OdiN
Just leave it at zero and take your refund. I would rather get money back than have to pay it.

suit yourself. but you are throwing away money that way.

I'd trust the paycheck assistant tool. Just make sure to include any deductions you will encounter.

I claim 8, but have a boat load of deductions.

Why am I throwing money away? I get that money back in Feb.

You could use that money and invest it and gain interest on it instead of giving it to the feds interest free for the year.

It would just end up as a little extra in my checking account....wouldn't be earning me anything.

 

[Ausm]

I get shafted so bad on taxes, I really don't want to discuss it


Ausm

 

[DBL]

Originally posted by: GeneValgene

Originally posted by: beyonddc

Originally posted by: OdiN
Just leave it at zero and take your refund. I would rather get money back than have to pay it.

Agree

you are just giving the government a free loan

i'd rather maximize the money i take every paycheck, then give back what i owe at the end of the year

time value of money

Exactly. If you consider yourself financially responsible, then the money would be better off working for you all year then the government.

 

[dullard]

Originally posted by: DBL
Exactly. If you consider yourself financially responsible, then the money would be better off working for you all year then the government.

That's my philosophy too. But we are in the the minority (its remarkable that this thread has so many supporting us though). Most people aren't financially responsible, or for some other reason like to be poorer than they need to be.

I say claim what the W4 instructions say to claim.

 

[MikeyIs4Dcats]

12...always claim 12.

 

[HardcoreRobot]

there is no reason to give the govt an interest free loan

 

[labgeek]

Or use the "extra" money to pay down any debt you have... Why float an INTEREST-FREE loan for the government? Or are you saying there is nothing you could use that money for in the meantime? If so you shouldn't be caring enough to even bother asking the question in the first place.

 

[Nutdotnet]

Originally posted by: labgeek
Or use the "extra" money to pay down any debt you have... Why float an INTEREST-FREE loan for the government? Or are you saying there is nothing you could use that money for in the meantime? If so you shouldn't be caring enough to even bother asking the question in the first place.

That's how I feel...I could use that extra $$$ to help pay down my CC debt.

 

[DBL]

Originally posted by: Nutdotnet

Originally posted by: labgeek
Or use the "extra" money to pay down any debt you have... Why float an INTEREST-FREE loan for the government? Or are you saying there is nothing you could use that money for in the meantime? If so you shouldn't be caring enough to even bother asking the question in the first place.

That's how I feel...I could use that extra $$$ to help pay down my CC debt.

If you have CC debt, then the choice is easy. Calculate what you owe in reality (your HR dept. can give you the documentation or possibly offer help) and increase your deductions so that you have the appropriate income coming in on a monthly basis. If it's $62/paycheck then send the extra $124/month to your credit card. You would most likely save about an extra payment for yourself by the end of the year based on a 10-15% rate. You can figure that out too if you like.