Aliceinworryland
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If you claim zero allowances all year and have dependents, during tax season you will have overpaid; therefore, you will receive a tax refund. |
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Hullabaloo
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Are you speaking of on your W-4s or on your tax returns? If you claim 0 throught the year, then you will get taxed more, as if you have 0 dependants. However, when tax time comes, you get to claim the number of dependants you really have. Let's say that number is three - then you would only be responsible for the tax for someone with three dependants, meaning that during the year you got taxed more than you really owed, which bottom line = more money back (or at least not as much tax owed.) |
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vaguy852
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caues more taxes to be withheld resulting in either a smaller tax bill or larger refund at the end of the year |
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wayfaroutthere
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You should not do this on your tax return, but it can be helpful to some people to do this on the withholding form W-4.
The reason to withhold without claiming all of your allowances is to be sure that the IRS will collect too much for your taxes over the year (assuming you just have regular jobs and don't have a side business or 1099 (contractor or other) income tax forms coming in). Basically, get them to take too much out of your check, and then you are sure that you won't get hit with a bill when you file your taxes--you'll get a refund.
The reason to not do this is that you don't get interest on your refund--so if you invested that extra money, you would have made something on it. If you aren't the investing type however, claiming 0 could be a really good idea--it's like a forced savings account you spend once a year, and you never saw the money, so you barely missed it. |
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kelbean
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To get more money back at income tax time. |
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stephen e
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i don't think there is |
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Judy1
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To have more withheld from their paycheck.
If both people work and both make decent money, sometimes the tax tables aren't real accurate with what they'll end up owing. |
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Laredo
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Are you talking about the number of dependents on an IRS W-2 Form ? If so, I would think it's so they will get a larger income tax refund. |
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pamela d
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bigger refunds |
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mister.alan
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none |
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Juliet
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If you mean dependents, I think it would be to get more taxes taken out during the year so that you get a bigger refund, or have less tax liability. |
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redwine
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to have more deducted from their check, so you take more out of taxes than normal to either (1) get a bigger refund, or (2) because you have a spouse that makes alot of money, and will likely have a payment due when you file. tba |
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Mel
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Withholding, they hold out more for taxes and if you owe at end of year will not be so much. If you get refund will be larger. |
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spacedude4
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They take out more taxes every payday and you could get a bigger refund at tax refund time. But most people do it because they have a second job or at least a second source of income. If you add the 2 incomes together you will often find you owe more money than the 2 lower incomes paid by themselves, even when added together. The tax rate is higher for higher incomes. For example you make $50,000 at a primary job and $25,000 at a second job. You pay taxes at the primary job at the $50,000 rate and the $25,000 rate at the second job. At tax time you owe taxes for the $75,000 rate which is more money than you paid to the IRS so you owe mroe. So you claim fewer deductions all year so you pay at the max rate and then hopefully get a refund instead of owing money. |
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drdduet
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bigger refund at years end. |
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chris m
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to give the government a really big and free loan until the end of the year. some people use it as a means of saving, but if you have control of your spending and saving habits, a high yeild savings from ing.direct or another will give you the interest instead of the government. |
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FuzzyWuzzy
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i think to ensure that the maximum amount of taxes is taken so u don't have 2 pay in...? |
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fatguyonalittlebike
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Perhaps the married persons spouse is claiming all of the additional allowances. Or, maybe they owe the IRS money from previous years and are just going to pay higher taxes each paycheck to pay it down. Or, maybe they think big tax returns are a good way to save money. |
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Jessie c
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Less of a chance of owing when submitting taxes |
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Freddi
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It takes the maximum of taxes out of your pay check up front, each pay period Then at tax time, if you owe you will not owe as much as if you claim more than 0. In most cases you will get money back because you overpaid. |
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Misty E
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Because if your spouse claims all the dependants then you shouldnt if you file jointly. |
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