exemption and best way to reduce the % of tax taken from eve

basharz2383 · Joined: 02 Jan 2008 Posts: 1

{ I need the money now, rather then later}
Questions i need help with please advise:
I am single, and work full-time.
How can i change my statues of being not exempted to Exempted? I am
student as of now taking a course for few months would that help? and
if i were to write Exempt on my W4, how would that effect me ?
If i were to list 2 people under # of exempt on W4 will i be count as
one ? Would that cut the percentage of taxes take from my check?

Archived from group: us>taxes

Paul Thomas, CPA · Joined: 25 Aug 2007 Posts: 3094

wrote
>{ I need the money now, rather then later}
> Questions i need help with please advise:

Never forget that the hole you are needing to fill now, is being filled by
digging another hole.....which will need to be filled at some point in time.

Meaning, that you may owe taxes later for the decisions you make today.

> I am single, and work full-time. How can i change my statues
> of being not exempted to Exempted?

You shouldn't claim "exempt" unless you are.

> Would that cut the percentage of taxes take from my check?

An increase in exemptions claimed on W-4 results in less federal and/or
state being withheld from your paychecks. The number of exemptions claimed
does not change the withholding of Social Security or Medicare tax from your
pay.

Any changes to your withholding allowances only impacts the amount of income
tax withheld. It does not change the tax amount at year end, only the
amount withheld for pre-payment. So you may see a smaller refund, or a
larger balance due.

--
Paul A. Thomas, CPA
Athens, Georgia

Phil Marti · Joined: 25 Aug 2007 Posts: 2520

wrote:

>{ I need the money now, rather then later}
> Questions i need help with please advise:
> I am single, and work full-time.
> How can i change my statues of being not exempted to Exempted?

You can claim exemption from withholding only if you meet the requirements
for such a claim, which are explained on the W-4. If there's something
there you don't understand, let us know.

> I am
> student as of now taking a course for few months would that help? and
> if i were to write Exempt on my W4, how would that effect me ?
> If i were to list 2 people under # of exempt on W4 will i be count as
> one ? Would that cut the percentage of taxes take from my check?

Check out IRS Publication 970 for the tax benefits available regarding your
education expenses. Then pay special attention to the part of the W-4
worksheet that deals with credits.

--
Phil Marti
Clarksburg, MD

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