Tax Withholding
#1
Tax Withholding
Hi
Can anyone tell me what the maximum federal tax witholding is? I claim married and 0, but what's the highest the zero can be?
Thanks
Paul
Can anyone tell me what the maximum federal tax witholding is? I claim married and 0, but what's the highest the zero can be?
Thanks
Paul
#2
Re: Tax Withholding
You mean dollar amounts, or number of withholdings?
Dollars are based on your salary using some strange formula that I've never quite worked out to my satisfaction. It gets especially tricky when filing married jointly with two incomes.
As for number of withholdings, I'm not sure if there is a formal upper limit, but there is a level (don't remember what it is - 10 perhaps?) that attracts considerably increased scrutiny from IRS.
Dollars are based on your salary using some strange formula that I've never quite worked out to my satisfaction. It gets especially tricky when filing married jointly with two incomes.
As for number of withholdings, I'm not sure if there is a formal upper limit, but there is a level (don't remember what it is - 10 perhaps?) that attracts considerably increased scrutiny from IRS.
#3
Re: Tax Withholding
Originally Posted by immunise
Hi
Can anyone tell me what the maximum federal tax witholding is? I claim married and 0, but what's the highest the zero can be?
Thanks
Paul
Can anyone tell me what the maximum federal tax witholding is? I claim married and 0, but what's the highest the zero can be?
Thanks
Paul
But come the day of reckoning (April 15th) if you have withheld too much money from the IRS you will have to pay them a chunk of change in taxes. They can also impose under-withholding penalties and make you pre-pay an estimate of the following years taxes.
Take a gander at this website. It's a great resource http://www.bankrate.com/brm/green/ta...s1-summary.asp
#4
Lost in BE Cyberspace
Joined: Jan 2006
Location: San Francisco
Posts: 12,865
Re: Tax Withholding
Originally Posted by ScousePete
Are you talking about the form (W4) you complete when you start a job? The "number" is the number of people you can claim as a dependent. It is generally your kids, but could be your parents (if they live with you and you support them) - you cannot include your spouse. The larger the number, the less tax will be withheld from your paycheck.
I don't think there's any limit to what you claim, but claiming 10 or more is likely to get you IRS attention. I claim 16 and got a nice little letter from the IRS asking for justification. And of course if you underpay your taxes for the year through the withholding, you may be liable for penalties when you submit your return.
Last edited by Giantaxe; Jan 15th 2006 at 6:47 pm.