Tax Question

[TheBubba]

Quick tax question... (google proved futile)

For the amount of tax the gov't is taking from me, I'm classified as "Single, withholding at a higher rate".

Does this mean that Uncle Sam is taking more or less money out of my paycheck than if it were just regular "Single withholding"?

Thanks, Bubba.

 

[Thisguy]

Sounds like more (but quite frankly, I'm not sure). How many exemptions are you claiming? Single guys usually go with 0 or 1. I use 1, because I usually get a return under $1000 each year, which is fine, because I don't feel like giving the gov't an interest free loan. Some people like doing 0 because they get a big lump of cash when they file thier returns. Whatever turns you on, I guess. Anything higher than 1, and you'll probably owe come April 15. Not cool.

 

[The Chief]

... "Single, withholding at a higher rate".

I you have taxable income from another source that does not withold taxes, say Social Security , you could underpay your taxes, even while claiming 0 deductions. The W-4 alternative is to declare 0 deductions while requesting addtional witholding at a specific monthly amount. :icon_wink