[ChicagoHope35]

Hi,

Hello to all the members here. I am a new member here and would like some information on how to fill the W4. I have recently joined a new employer and am wondering how to go about it.

I will be filing as a single individual. I wanted to know if I can claim my retired parent's in India as dependants. Also, what possibilities exist to reduce my tax burden on the final W2. I have a delinquent debt to pay off. Can this help to reduce my tax burden? I am actively trying a debt consolidation solution for that.

Another question is, can I file under the category head of household? Does that help in any way?

Finally, I have been offered 15K as a sign on bonus. Can I tell my company to pay me the full bonus amount before taxes so that I could pay the taxes later? This is just because I don't want to lose the $5000 in taxes at this stage.

Any answers from the experts would be sincerely appreciated.

Thanks

[AtlantaTaxExpert]

For the bonus, BY LAW the company must withhold 30% for income taxes, plus the standard 7.65% for Social Security and Medicare taxes, if applicable.

If your parents are in India, you cannot claim them, nor can you use them to file as Head of Household. They must be living with you to claim HoH; they must be living in the U.S. to be claimed as dependents.

Claiming single status with 3 exemptions will get you the highest paycheck while withholding enough to cover most of your tax liability. You may have to pay a small amount when you file your tax return, but that is better than giving the government an interest-free loan, which is what a tax refund really is.

[ChicagoHope35]

I really appreciate your response ATE. Thank you very much. :) This surely will go a long way in helping me file taxes appropriately.

[AtlantaTaxExpert]

Glad to help!