W-4 form for new job

JayDee · #1 (**permalink**) 11-03-2006, 04:29 PM

Hello everyone, this is actually my first post after browsing through this sight for many days now.. I couldn't find a solid answer in regards to filling out a W-4 form. I am actually switching jobs and I start on Monday (Woo Hoo!) and I know I'm going to be filling out one of those W-4 forms. I don't want to seem like I don't know what I'm doing but in the past I would claim 0 because people would say I would get a "bigger tax refund" but more would be taken out on every paycheck. Should I still claim 0 or 1.. I will only be working 25 hours a week and making about 15k-18k a year because I'm still in school... if I claim 1 I don't get as much taken out on my checks but there might be chance I might have to pay back some taxes..?? I guess my question is what is the best way to go LEGALLY and to get the most out of my paycheck and not pay for taxes at the end of the year.. Hopefully this all makes sense, thank you in advance..

ren · #2 (**permalink**) 11-03-2006, 09:24 PM

Well, if you want to make sure you don't get in trouble with the IRS, why not let the IRS help you figure it out?

I used the answer they gave me and was only off a little bit -- refund of $60 or so last year.

cleveronehomes · #3 (**permalink**) 11-05-2006, 11:37 PM

depending on your state taxes...but you can legally claim a maximum of 9 before the company informs the IRS. When you claim yourself as 1, which most people tend to do, your withholdings is actually at 3. This would be the fair, you get some $ taken out of your paycheck and then you would most likely get some money back - especially if you are still in school. Your school should send you something for tax purposes as well that you can claim on your taxes come April. Also, you can claim the max and save that extra money and put it in a high interest savings like ING and it would pay off more than having it go to the government. since it would be earning you money for the future...

anyway, if you want to play it safe just claim yourself - this would be 3 as the total, if you want a bit more out of your check (say 25 bucks more) then claim 5 total or go for the max....just save and spend wisely!!! good luck

tabbycat31 · #4 (**permalink**) 11-07-2006, 09:39 AM

if you are in school, don't overlook the education credits. The Hope credit (for first and second year college students) is worth $1500, and the Lifetime Learning Credit can be worth up to $2000.

With your salary, one of those credits can easily wipe out your tax liability (that is if you are not a dependent of your parents)

instantinfo4you · #5 (**permalink**) 12-05-2006, 01:31 PM

I would claim 0 and get a better amount at the end of the year. I know I certainly look forward to the irs paying me back some of that tax money I give them all year long. Maybe I am being small minded, but I definitely enjoy a nice big tax return at the end of the year. Makes me feel like uncle sam has given me a nice big present.