Exemption on residency tax form. Help pls!!

[in4mthsMD]

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Does anyone know the best option( and why it is so) for one to put down in regards to exemption. Will one get more money back and less money taken out? I am taking care of my mother and so, she is one of my dependents. So, I need to put down 02 for total number of dependents, that I know. Then again, I am kinda lost when it comes to "exempt". I guess the real question is : if I put down exempt, do I get more money back bi-weekly, and more tax returns or is the reverse true? Any help would be graciously appreciated.

 

[argh]

The more exemptions you claim (e.g., dependents), the less in taxes will be withheld from your paycheck, since your personal exemptions and the dependents you claim will reduce the income from which your taxes will be calculated.

if you write "exempt" on your W-4 you won't have any federal taxes deducted from your paycheck, and , yes, you'll have to pay out what you owe in federal taxes on 4/15. You've got to have a reason to be exempt though; really, it's only if you think your salary for this tax year will yield zero dollars (or some really small amount, I guess) in federal taxes. an example of this is for those who are starting internship this year and can claim lifetime learning credit. you might use form 1040-ES off the IRS website if you want to guesstimate your taxes for next year. If you can't claim an exemption from withholding of federal taxes based on 1040-ES, you're probably better off just going with whatever number your W-4 tells you.