Warning

 

Close

Confirm Action

Are you sure you wish to do this?

Confirm Cancel
Member Login
Posted: 3/2/2006 6:59:20 PM EDT
Do you pay more taxes if you have one or more dependants, or do you pay more taxes if you are "dependantless" (all else being equal)? Got into a discussion about this with someone about which is correct.

Thanks
Link Posted: 3/2/2006 7:55:32 PM EDT
You pay more with zero dependents.

That's why people who want a large refund claim zero on their W-4, and then claim their dependents on their return. Dependents are deductions in taxes owed, and the extra money is refunded.
Link Posted: 3/2/2006 11:33:55 PM EDT

Originally Posted By OBird:
Do you pay more taxes if you have one or more dependants, or do you pay more taxes if you are "dependantless" (all else being equal)? Got into a discussion about this with someone about which is correct.

Thanks



Yeah, are you talking about how much is withheld from your paycheck, or the amount of your income tax that is calculated on your return before subtracting your credit for what was withheld through the year?
Link Posted: 3/2/2006 11:38:01 PM EDT
[Last Edit: 3/2/2006 11:39:39 PM EDT by OBird]

Originally Posted By prk:

Originally Posted By OBird:
Do you pay more taxes if you have one or more dependants, or do you pay more taxes if you are "dependantless" (all else being equal)? Got into a discussion about this with someone about which is correct.

Thanks



Yeah, are you talking about how much is withheld from your paycheck, or the amount of your income tax that is calculated on your return before subtracting your credit for what was withheld through the year?



I'm talking about how much is withheld from your paycheck. With tax time coming around, it occured to me that I actually might have made a mistake on a W4 I signed for a job early last year. It is possible that I actually wrote that I have one or two dependants when I really have none (single college student). Stupid! I was discussing this with someone else to try and find out if I will have to scrounge up more cash to pay the IRS come April...

Looks like I'm in trouble At least it was a fairly low-paying part-time job that I only had for about two months, so it might not be too bad.
Link Posted: 3/2/2006 11:41:33 PM EDT

Originally Posted By OBird:
Stupid!



We weren't going to SAY anything...

Hope it all works out.

Link Posted: 3/3/2006 12:24:44 AM EDT
All it would mean is that you may owe the IRS a little. You would have paid it anyway, but your way you got to use it longer. Don't sweat it.
Link Posted: 3/3/2006 6:30:32 AM EDT

Originally Posted By OBird:

Originally Posted By prk:

Originally Posted By OBird:
Do you pay more taxes if you have one or more dependants, or do you pay more taxes if you are "dependantless" (all else being equal)? Got into a discussion about this with someone about which is correct.

Thanks



Yeah, are you talking about how much is withheld from your paycheck, or the amount of your income tax that is calculated on your return before subtracting your credit for what was withheld through the year?



I'm talking about how much is withheld from your paycheck. With tax time coming around, it occured to me that I actually might have made a mistake on a W4 I signed for a job early last year. It is possible that I actually wrote that I have one or two dependants when I really have none (single college student). Stupid! I was discussing this with someone else to try and find out if I will have to scrounge up more cash to pay the IRS come April...

Looks like I'm in trouble At least it was a fairly low-paying part-time job that I only had for about two months, so it might not be too bad.



So you pretty much figured it out. Declaring too many dependents on your W-4 causes less withholding than you normally would have. You should have your W-2 from the employer since a month ago. Figure your taxes out now and see how much, if any, you need to come up with in LESS THAN 45 DAYS.

Whatever you do, file your return on time and pay as much as possible on any balance you owe, by the deadline. The penalties for filing late & not paying when due (plus interest) are pretty bad.

Look into the Earned Income Credit. Even though most think of this as a thing for unemployed momma's with a kid or ten, my 32 y/o single-no-kids friend qualified. Of course he didn't start working until late in the year, and it phases out the more you earn.
Top Top