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  1. #1
    Join Date
    Jan 2011
    Posts
    9

    Default Consequences of Claiming Too Many Exemptions

    I moved to Mississippi in January, and after searching for several months I finally got a job, or two actually. Both are part time and I get paid $7-$8 an hour from both places of employment. I haven't been working there long, about a week, but when I had consolidated my parents and employers about filling out the W4( or is it W2), I think I may have done something wrong, or put too many exemptions, or something. (I wish laws were easier to understand!)

    I was told to put that I had two exemptions by my employers, but my parents said that I should have put 0 or 1. So I'm really confused now. But here is some of my basic information about my living that may help.

    I didn't work between mid-December and mid-May.
    I am 20, single, and live alone, and I do not have children.
    I pay all of my own bills and receive no financial help from my parents or the government.
    I get between 20-40 hours at my primary job, making $7.25 an hour.
    I get between 10-25 hours at my secondary job, making $8 an hour.
    My fiscal responsibilities (bills, school loan payments, credit card, insurance, etc) add up to $900 a month, and whatever I have left goes towards gas, food, and savings.


    I think that is all that is relevant that you may need to know. I would just like to know if I need to adjust my tax forms. I need all the money that I make, but I don't want to owe Uncle Sam when tax time comes around next year, and I have no clue what kind of State tax laws MS has. Can you help me out?

  2. #2
    Join Date
    Sep 2005
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    Behind a Desk
    Posts
    74,168

    Default Re: Consequences of Claiming Too Many Exemptions

    If you claim too many exemptions and, as a result, not enough taxes are withheld from your pay to cover your annual tax debt, you'll owe the IRS money when you file your tax return.

    The same holds true for the state - any state that has an income tax.

  3. #3
    Join Date
    Jan 2011
    Posts
    9

    Default Re: Consequences of Claiming Too Many Exemptions

    That really didn't answer my question at all... I wanted to know if I claimed too many, and if so, what should I have claimed? I also wanted to know what kind of state taxes, and withholding that MS has.

  4. #4
    Join Date
    Sep 2005
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    74,168

    Default Re: Consequences of Claiming Too Many Exemptions

    If you are your own dependent and you have no other dependents, you claim "1". If you are a dependent of your parents, you claim "0".

  5. #5
    Join Date
    Jan 2011
    Posts
    9

    Default Re: Consequences of Claiming Too Many Exemptions

    So having a second job doesn't effect how much I claim?

  6. #6
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    74,168

    Default Re: Consequences of Claiming Too Many Exemptions

    Some people report an incorrect number of dependents in order to try to get a larger or smaller tax refund at the end of the year; I'm not suggesting that approach and, as previously explained, if you report the wrong number and end up owing taxes, you will need to pay those taxes.

  7. #7
    Join Date
    Jan 2011
    Posts
    9

    Default Re: Consequences of Claiming Too Many Exemptions

    I don't know, ask my employers, they all told me I should of claimed 2, but I'm thinking that I need to go back and change it to 1.

  8. #8
    Join Date
    Sep 2010
    Posts
    9,688

    Default Re: Consequences of Claiming Too Many Exemptions

    You can adjust the exemptions to suit your situation. Actually if you work multiple jobs, you need to claim FEWER exemptions (and sometimes additional money in) because the individual jobs deduct based on the assumption that your tax bracket will be in line with what that one job is paying you.

    As stated, you don't have enough withheld, you owe the IRS money at filing. If you owe substantial sums, you'll also be assessed a penalty.

  9. #9
    Join Date
    Jul 2007
    Location
    Florida
    Posts
    1,870

    Default Re: Consequences of Claiming Too Many Exemptions

    A second job certainly can change the number of allowances a person should claim. There is a worksheet that accompanies form W-4 that considers dependent exemptions, itemized deductions, multiple jobs, etc. in determining a taxpayers allowances. Claim less and you'll get a refund. Claim more and you'll owe at the end of the year. But the only way to get it right is to use the worksheet, or go to someone that will help you do the worksheet.

  10. #10

    Default Re: Consequences of Claiming Too Many Exemptions

    go to www.irs.gov. They have a withholding calculator. Input the information into the calculator, and it will estimate how much tax you will owe or overpay at the end of the year. If you owe tax, you may want to increase the number of exemptions, or take the amount that you may owe and divide that by the amount of pay periods left in the year, and add that amount to your withholding, also through the W-4 forms with your employer(s).

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