i am a single mother of two and make 46,000 a year. If I change my dependents from 0 to 3 on my w4 will I owe?
I have always claimed 0 with my employer to withhold taxes. I was curious to know if I switched to 3 people in my household if I would owe taxes at the end of the year. I have always got back a large return but I would like to have more income during the year without owing. Can someone tell me what I could claim and not owe at the end of the year? Thanks!
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You should be OK if either child is under age 17, and could even safely claim more than 3.
You can easily claim three allowances and not owe at the end of the year. You can likely claim far more than three. Look at the instructions on the W-4: http://www.irs.gov/pub/irs-pdf/fw4.pdf
Generally, if you are not a high income earner, follow the instructions to see how many allowances it tells you to claim and then reduce that number by one. This will almost guarantee you a small refund when you file and larger (net) paychecks throughout the year.
consider this, for 2012 your non taxable income was $20100, you had $1000 for each child to reduce your income tax liability and if that didn't get wiped out there the left over was then an additional child credit
if you claimed 0 the major portion of your refund with that kind of income is your withheld income tax
and yes, you can claim more to have more spending money during the year
the W-4 calculator you can find at www.irs.gov will help you
Not an answer (just a notation).
You may get an answer to google:
IRS withholding calculator.
The site is down due to new taxation changes.
Opinion: Make it at least 1.