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pnksand3 · Jan 16, 2012, 03:50 PM

What numbers should I put on my w-4 form I make 20.000 year, I am going to filing single should I put 0 on the lines 1-4, my boss says I should put 1. I would like to get money back next year this year I am getting 12 dollars

ScottGem · Jan 16, 2012, 05:26 PM

Why do you want to loan the government money interest free? That's what you are doing when you increase your withholding. The money you get back at tax time is YOUR money that you paid in advance of determining your actual tax liability. If you only got $12 back then your W4 is set properly.

If you would like money back at tax time then ask your employer to figure out the difference between your withholding at your current level and if you lower your W4 exemptions. Then put the difference into a savings account each week. Next year, when tax time comes that will be your refund.

north50 · Jan 22, 2012, 07:34 PM

The fewer deductions you claim, the more in taxes they'll take. Then, when you file in April, you'll find that you overpaid somewhat - and you'll get a nice check back (a refund of what you overpaid).

The amount that you're overpaying is small - you won't miss it - but you will notice the nice check you get back in April - it's kind of like forced savings.

Fr_Chuck · Jan 22, 2012, 08:04 PM

I will agree, why would you want to let the government have the money, you are better off just taking money each week and putting it into a savings account with interest, then you already have the money. It is just your own money you give them, they keep it all year and then give it back.

But you claim single and 0 and they hold the most out, and then you can get your own money back when you file.

ScottGem · Jan 23, 2012, 04:24 AM

Originally Posted by north50

The fewer deductions you claim, the more in taxes they'll take. Then, when you file in April, you'll find that you overpaid somewhat - and you'll get a nice check back (a refund of what you overpaid).

The amount that you're overpaying is small - you won't miss it - but you will notice the nice check you get back in April - it's kind of like forced savings.

Yes it is "kind of like forced savings". But many banks allow you to set up a plan where a certain amount is moved from your checking account to savings periodically. I would certainly prefer putting that money into a savings account that will earn interest (however small) then loaning it to the government to use interest free.

I have to laugh at a recent TV commercial from a tax preparer that shows a client jumping up and down for joy when he finds out how much of a refund he is getting. I wonder how much joy that person would have if he realized what he was getting back was his OWN money that he could have had the use of all year.