How many exemptions should I claim for federal income tax?

You are confusing the exemptions for your W4 payroll withholding and your exemptions on your tax forms. You have some flexibility on you payroll withholding though it is best to use the worksheet to calculate the best number and then decide if you want to claim less exemptions (more withheld) or more (less withheld). There is penalties for withholding to much or to little.

The Exemptions on your tax forms have specific rules so you must be correct (likely 1) and completing the forms will determine that taxes you owe. The refund, if any, is what your payroll withholding were less what you owe. You pay if your withholding was less than what you owe.

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RE:

How many exemptions should I claim for federal income tax?

Hey everyone, I am 21 years old, single, nobody else can claim me as a dependent. I make about 32,000 a year and want to know if its OK to claim 2 on my federal income tax? I know that this means I will get a smaller refund, but I don't care about that. I just want as much of my money as...

You're confusing exemptions with withholding allowances. You claim exemptions on your tax return and withholding allowances on your W-4 at work.

You can safely claim 2 withholding allowances on your W-4 in your situation. You'll be pretty close to break-even at filing time. You may get a small refund or have a small debt to pay, normally within $100 either way.

The exemptions on your actual tax return are limited by law -- just 1 in your case since you are single and have no dependents.

No. On your income tax return, you can only claim one -- for yourself. You would never be able to claim more than one.

If someone else was able to claim you (like your parents), then you would claim zero and they would claim you.

On your W-4, which your employer uses to decide how much to hold out of your pay in taxes, you could claim more than one and get more money. But you should not, because when you file your taxes you will still only have 1 exemption to claim. If you claim more than 1, you will end up owing when you file your taxes.

The ONLY time you might consider claiming more than 1 on the W-4 is if you will be itemizing deductions. Even then, you would only claim 1 for each additional $3400-3500 in deductions you will be claiming on your federal return. You still only get 1 EXEMPTION on the return.

Ok by your question I can tell you are totally confused.

To claim some means you have a dependent on your tax return.

Apparently you are asking about your W4 which you fill out and give to your employer, this form tells your employer how much to deduct from your paycheck for federal withholding.

Form more information on how many you should claim on your W4 visit IRS website www.irs.gov and use the withholding calculator, it will get you close enough where you will not owe IRS or will be due a refund.

How Many Exemptions

In your situation, you are correct to claim two withholding allowances on your W-4 wage withholding statement.

You are entitled on your W-4 to claim one wihtholding allowance for yourself and a second one because you have only one job. If your $32,000 in wages comes from more than one job, then you should claim fewer than 2 witholding allowances.

When you file your tax return you are entitled to one exemption for yourself and one more for each dependent.

Richard K

This advice is based upon our understanding of the law in effect at the time it was written as applied to the facts you described.

You can claim 2 if your only income is from that job. You could end up owing a little though when you file your return.