Putty Posted June 29, 2007 Report Share Posted June 29, 2007 Anyone know the approx difference from claiming 0,1,2,3,4,5 on your check? Meaning if I am claiming 1 now and feds take 5**.00......what would it be if I were to claim 5. Just a rough idea?? Quote Link to comment Share on other sites More sharing options...
dragknee66 Posted June 29, 2007 Report Share Posted June 29, 2007 You would proably end up paying back at the end of the year. I claimed 0 for a while and was getting raped, I claim 1 now and Ill probably break even this time around. However, if you work a bunch of overtime you can claim 5 to get most of it back, I just wouldnt do that all the time hah. Hopefully someone with some better knowledge will chime in. Where is Amy when you need her, her grandma does this crap for a living. Quote Link to comment Share on other sites More sharing options...
Putty Posted June 29, 2007 Author Report Share Posted June 29, 2007 I claim 1 now and I get about $700 back each year....total, state/fed. I'm wondering at what point you even out and owe nothing and get nothing back....2-5? Quote Link to comment Share on other sites More sharing options...
dragknee66 Posted June 29, 2007 Report Share Posted June 29, 2007 hmm.. no more than 2 probably. Did you get like 100-150 back in state? You would probably be ok with 2 at this point in the year now. Quote Link to comment Share on other sites More sharing options...
dragknee66 Posted June 29, 2007 Report Share Posted June 29, 2007 It F*CKING kills me when I hear about people getting like 5k back. Bastards. They have "little deductions" most of the time though too. I think I would rather have no money back, than 5k with little rug rats... Quote Link to comment Share on other sites More sharing options...
HAOLE Posted June 29, 2007 Report Share Posted June 29, 2007 Try owning your own business... I never get anything back, I always pay at the end of the year. At the same time, I bet I pay less tax that an employee that made the same amount as I do. Quote Link to comment Share on other sites More sharing options...
Skinner Posted June 29, 2007 Report Share Posted June 29, 2007 It F*CKING kills me when I hear about people getting like 5k back. Bastards. They have "little deductions" most of the time though too. I think I would rather have no money back, than 5k with little rug rats... I/we got 5k back last year due to your "little deductions" and I claim 3 and my wife claims 2. Quote Link to comment Share on other sites More sharing options...
RX-7 Addict Posted June 29, 2007 Report Share Posted June 29, 2007 Can someone explain the 0,1,2,3 for someone who doesnt know anything about taxes? Quote Link to comment Share on other sites More sharing options...
Bam Posted June 29, 2007 Report Share Posted June 29, 2007 I/we got 5k back last year due to your "little deductions" and I claim 3 and my wife claims 2. For all 3? Damn, I thought it was $3200/child across the board? At least that's what we get for our daughter come April every year. It's a nice chunk to add to her savings acct, she's gonna be rich, lol. Quote Link to comment Share on other sites More sharing options...
HotCarl Posted June 29, 2007 Report Share Posted June 29, 2007 You would proably end up paying back at the end of the year. I claimed 0 for a while and was getting raped, I claim 1 now and Ill probably break even this time around. However, if you work a bunch of overtime you can claim 5 to get most of it back, I just wouldnt do that all the time hah. I usually claim 0 during the year and end up with a tax refund at the end of the year. Only reason why is because its almost garanteed you won't owe if you claim 0. When I worked at the warehouse and we knew we'd be facing alot of OT in the near future alot of us would claim Exempt for a certain SMALL period of time in order to keep the Fed from taking all of our OT earnings. I would never recommend anyone doing this year round. I only did it for the holiday's b/c i would constantly work 50-60 hr work weeks. You can only claim exempt for federal taxes, not state. I did know a guy who regularly worked 60 hour weeks and claimed exempt year round. Though he also had 3 kids, a wife in school, and a mother in law to take care of all of which he claimed. He got a paycheck with no federal taken out and a small return every year aswell. This is just my personal experience's that worked for me, I am by far an expert. Quote Link to comment Share on other sites More sharing options...
girlygirl18t Posted June 29, 2007 Report Share Posted June 29, 2007 For all 3? Damn, I thought it was $3200/child across the board? At least that's what we get for our daughter come April every year. It's a nice chunk to add to her savings acct, she's gonna be rich, lol. The Irs has limits on the amount of credit you get per child. So it's not really beneficial to have 20 kids. If the goverment had not set a cap on the amount you can get back you would see more poor dirty trash with a tribe of kids. (well worse than it is now) I have heard that the welfare system can be "worked" by spacing out the kids you have to continue to retain welfare and food stamps. Anyway.. I claimed 1 last year and claimed our son at the end of the year with my deductions for being a full time student and a "single" parent I got back over $4k. Dave claimed 2 (claimed our son) all year but not at tax return time, but did claim head of house hold and he got back almost $2k. It just depends on how much you make, your possible deductions and the way it works out best. Quote Link to comment Share on other sites More sharing options...
TTQ B4U Posted June 29, 2007 Report Share Posted June 29, 2007 We know that pain. That's why even with two kids I claim zero. Actually, we can get out of owing a lot simply by maxing out all the investments and IRA's at the end of the year. Basically my wife's income from her practice is darn near all saved and is building the hopefully soon to be pile of money we can retire early on in the coming years when gas is like $6gal and everthing is costs 10x more than it does today My suggestion for the OP is to talk with a good financial planner and work with them on paying yourself first every month and at the end of the year on taxes. No matter how little, start saving it up. My wife and I each started with $100mo like clock work back in the day. Load up your 401k but also diversify and if you qualify for a ROTH IRA, that's often another great place. $4k per person per year now I think? If you make more, then work with them on other funds. We ended putting an additional $14k into investments back in April and by doing so we knocked about $4,800 off the taxes we would have owed. The way we look at it, we paid ourselves to save the money for later. Try owning your own business... I never get anything back, I always pay at the end of the year. At the same time, I bet I pay less tax that an employee that made the same amount as I do. Quote Link to comment Share on other sites More sharing options...
Putty Posted June 29, 2007 Author Report Share Posted June 29, 2007 I claim 1, put 11% into my 401k, $25 a check into stock purchase, $20 into hidden savings, and $20 into a IRA. I am now about to buy a house, so I want to change my deduction to get a little more back on my checks. Who cares if I don't get the average $700 back I usually get....Next year I will be a homeowner and will itemize like a bitch and get quite a bit back anyways. See where i'm going? Quote Link to comment Share on other sites More sharing options...
dragknee66 Posted June 29, 2007 Report Share Posted June 29, 2007 Drop all little extras for a year and get back? 0 into 401.. 0 into stock.. 0 hidden savings.. calculate all that for the rest of the year and see what you come up with. Probably wouldnt be worth it, but might be an interesting number. Quote Link to comment Share on other sites More sharing options...
Putty Posted June 29, 2007 Author Report Share Posted June 29, 2007 Drop all little extras for a year and get back? 0 into 401.. 0 into stock.. 0 hidden savings.. calculate all that for the rest of the year and see what you come up with. Probably wouldnt be worth it, but might be an interesting number. Hecks NO! I'd love all the extra income and would hesitate to put it back the way it is. Plus, I have been for so long like this I dont even miss that money. Quote Link to comment Share on other sites More sharing options...
dragknee66 Posted June 29, 2007 Report Share Posted June 29, 2007 thats good house $ tho.. but kinda late now to think about it hah. Claim 2 or 3 and let us know how it turns out next year Quote Link to comment Share on other sites More sharing options...
Putty Posted June 29, 2007 Author Report Share Posted June 29, 2007 Gonna go with 3 on Monday..:eek Quote Link to comment Share on other sites More sharing options...
Guest GMoney Posted June 29, 2007 Report Share Posted June 29, 2007 There are way to may factors that go into your deductions to just say # is best for everyone. 1. How many deductions you can claim including your self. 2. If you own a house/how much you pay in interest. 3. How much interest you pay in school loans. 4. How much you save in things that are tax deductable like 401K and IRAs. Theres even more involved than this and also it based on how much you make compared to how much dedutions you have. 401ks normally are pulled before taxes so don't make that big of a difference. You should claim 2 normally if you are single and do one of the above listed items. It should get you close, if you pay student loans, house payment, and max your avaible roth IRA you can claim an extra or two. You could always claim 0 and get a huge check back at the end of the year but the government has YOUR money for a year and you could have invested it in something short term like a CD and still blow it in April as most people do anyways. I AM IN NO WAY AN EXPERT ON THIS TAX CRAP! Quote Link to comment Share on other sites More sharing options...
LJ Posted June 29, 2007 Report Share Posted June 29, 2007 With no bonuses you even out at 2. If you may work overtime, you want to claim 1, just how it works. It is set that a single person can claim 2 on straight salary, then 1 more for each dependant and your spouse. Get a huge check back is only good if you are a dumb ass at managing money. If you are a good tax planner, and have the correct tax shelters, you should always come out to $0 owed/$0 at the end of the year Quote Link to comment Share on other sites More sharing options...
gillbot Posted June 30, 2007 Report Share Posted June 30, 2007 I always claim 0 and get an assload back at the end of the year. Quote Link to comment Share on other sites More sharing options...
RangerTurbo Posted June 30, 2007 Report Share Posted June 30, 2007 It F*CKING kills me when I hear about people getting like 5k back. Bastards. They have "little deductions" most of the time though too. I think I would rather have no money back, than 5k with little rug rats... A guy I work with has 5 kids. He got back $16 grand from his frigging taxes. He made a nice down payment on a new friggin boat with it Quote Link to comment Share on other sites More sharing options...
87GT Posted June 30, 2007 Report Share Posted June 30, 2007 Anyone know the approx difference from claiming 0,1,2,3,4,5 on your check? Meaning if I am claiming 1 now and feds take 5**.00......what would it be if I were to claim 5. Just a rough idea?? I claim 0 and it just me. I itemized my taxes, interest on my house, medical bills. I end up paying $50. That is almost perfect in my book. Quote Link to comment Share on other sites More sharing options...
TTQ B4U Posted June 30, 2007 Report Share Posted June 30, 2007 Congrats on the home thing...you'll get more back just on the interest you'll be paying alone. Back when we bought our first house, the payment was Double our rent, but what we got back based on the interest alone made the difference between renting and buying so much smaller that it really is true when they say you can't afford not to buy a house. I claim 1, put 11% into my 401k, $25 a check into stock purchase, $20 into hidden savings, and $20 into a IRA. I am now about to buy a house, so I want to change my deduction to get a little more back on my checks. Who cares if I don't get the average $700 back I usually get....Next year I will be a homeowner and will itemize like a bitch and get quite a bit back anyways. See where i'm going? Quote Link to comment Share on other sites More sharing options...
Got-Boost? Posted June 30, 2007 Report Share Posted June 30, 2007 For all 3? Damn, I thought it was $3200/child across the board? At least that's what we get for our daughter come April every year. It's a nice chunk to add to her savings acct, she's gonna be rich, lol. Earned income credit for kids is like $3k for the first one and around $1k for each one after that but that depends on your bracket. Of course it's different for everyone..... I always claim 0 in hope of never having to pay at the end of the year. The more you claim, the less they take out but again based on your tax bracket you may have to pay a little or a lot at the end of the year where claiming 0 you have a less chance of paying more AND getting a return. Unless you make big $$$$ and can do better making money with the interest through out the year, it's not going to matter that much. If you are that tight on getting by, you may want to change your spending/earning habbits.... Quote Link to comment Share on other sites More sharing options...
verse Posted June 30, 2007 Report Share Posted June 30, 2007 A guy I work with has 5 kids. He got back $16 grand from his frigging taxes. He made a nice down payment on a new friggin boat with it Yeah a guy I work with gets back $11g's every year. Quote Link to comment Share on other sites More sharing options...
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