Exemptions when it comes to paychecks - Chicagoland Sportbikes
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post #1 of 16 (permalink) Old 09-17-2004, 01:30 PM Thread Starter
 
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Exemptions when it comes to paychecks

To any tax people...

I'm trying to figure this out so that I don't have to pay at the end of the year...on my last job, which was also my first out of college, I could still be claimed as a dependant. So I just had my 1 federal and 1 state exemption which I claimed. Now on this new job I quickly filled out the sheet and realized after submitting it that I now have 2 federal exemptions since I can't be claimed as a dependant. Just a plain single guy...should I worry about having to cough up extra bucks at the end of the year with 2 exemptions now instead of one? I pay interest on school loans and have a few deductions, so I'm hoping everything sort of evens out...it's kind of nice to get a bigger check
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post #2 of 16 (permalink) Old 09-17-2004, 01:38 PM
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Yes, at least when I was married and claimed 2 exemptions, and now that I'm single, it does make a difference in the withholdings.

You may claim 4 exemptions or whatever, but then you'll get raped at tax time.

But you should be able to resubmit a W-4 and your employer should adjust accordingly.
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post #3 of 16 (permalink) Old 09-17-2004, 01:38 PM
 
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Depending on you tax bracket... 2 shoud put you close to break even when you factor in the deductions from school loan interest. That's what I was claiming at my last job...but I also have 25k in school loans and I'm at 6.25% interest because I consolidated in the summer of 2001. IF I had been able to wait 1 year... i could have locked in at under 3% ....Grrrrrrr

So with that in mind... you might need to keep it at 1.
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post #4 of 16 (permalink) Old 09-17-2004, 01:40 PM
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i don't think you can deduct student loan interest if you make more than 65k a year

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post #5 of 16 (permalink) Old 09-17-2004, 01:45 PM Thread Starter
 
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Looks like I'm in the 25% tax bracket. I make over 29,050 but less than 70,350...I also make less than 65k, so I guess I still get to deduct interest. So I should be ok at staying with 2 exemptions for the time being it looks like?
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post #6 of 16 (permalink) Old 09-17-2004, 01:53 PM
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post #7 of 16 (permalink) Old 09-17-2004, 03:36 PM
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So what are the tax brackets. I know I have heard if you make so much money after a certian amout they bump you up to the next bracket. I just want to know if I am going to be bumped up to the next level. Is it over 70 thousand or 100 thousand I don't know.
post #8 of 16 (permalink) Old 09-17-2004, 03:38 PM
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Steve.. think if you're making more than 320k or so... you're in the hightest bracket.
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post #9 of 16 (permalink) Old 09-17-2004, 03:45 PM
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the ideal thing to do is pay just enough so you don't owe or get anything back.
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post #10 of 16 (permalink) Old 09-17-2004, 04:02 PM
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If you are single and no dependents you must claim 0 at least they will pay you back at the end of the year. me and My wife are both claimiing 0 and almost break even at the end of the year

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post #11 of 16 (permalink) Old 09-17-2004, 04:47 PM
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I DONT KNOW SHIZ BOUT TAXES

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post #12 of 16 (permalink) Old 09-17-2004, 04:54 PM
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post #13 of 16 (permalink) Old 09-17-2004, 05:04 PM
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You can technically claim 10 thruout the year so you get your money, but when it comes to the end of the year you will be paying out your ass the taxes they didn't take out.

The way we used to get our vacation pay at work it was a percentage of the amount made the previous year. Some guys would go in about 2 weeks before the check would come and claim 10 so that they would get most if not all of the money so that they had more money for vacation. Then when the check came they would change it back to w/e it was beforehand.

I claim 0 so that I get a check back every year. It's like a nice little savings for me

The government gets your money anyways so for the people that use that as an excuse not to claim 0 I think is BS excuse...Jus my opinion


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post #14 of 16 (permalink) Old 09-17-2004, 05:06 PM Thread Starter
 
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You pay a certain amount, pending on what you make...someone correct me, but I think they go like this...let's say you make 50k...

You'd be in the 29,050-70,350k tax bracket (25%).
The tax on 29,050 is $4,000...this is based off of the percentages for the taxes below this bracket. For example if you make from 0-7150 per year then you have a tax rate of 10% or $715...if you make from 7150-29050 then your rate is 15% plus the $715 that you pay for the first 7150 of your earnings. At least the nice thing is that you pay tax increasingly. So here we see that for the first $7150k you made you paid $715. For the amount you made between 7150 and 29050 you paid a 15% rate which adds up to 3285...add in the 715 from your first earnings and for the year, you'll pay $4000 for a salary of $29050. Next we step into the 25% bracket which goes up to $70,350. So going back to our example...if you make 50k then for your first $29050k you've paid $4000. Now we subtract $50,000-29050 and multiply what you get by 25%...add $4000 to it and that's what you'll pay in federal taxes for the year...$9237.5. Now this is for someone that's single...married is a bit different. hehe I prolly lost whoever's reading this, hell I've pretty much lost myself
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post #15 of 16 (permalink) Old 09-17-2004, 05:10 PM
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Quote:
Originally posted by CHeYeNNe

I claim 0 so that I get a check back every year. It's like a nice little savings for me

The government gets your money anyways so for the people that use that as an excuse not to claim 0 I think is BS excuse...Jus my opinion
If you don't mind giving the government an interest-free loan, you're right that you pay the same in the end. I would rather have the $$ now. Plus, if you're a homeowner and claim 0, you'd get a rediculous amount back at tax time. I claim 3 and just about break even.

-Mike
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post #16 of 16 (permalink) Old 09-17-2004, 05:18 PM Thread Starter
 
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Quote:
Originally posted by RSVMillenian
If you are single and no dependents you must claim 0 at least they will pay you back at the end of the year. me and My wife are both claimiing 0 and almost break even at the end of the year
No, you can claim 2. You can put 1 if you have one job, and another 1 in if no one else can claim you as a dependant.
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