Determining Your Exemptions For Next Year
- If you are getting a big amount in refunds this year, you should consider revising your exemptions for next year.
- Exemptions can be revised by filing a W4 form with your employer.
- When you increase the number of exemptions, less tax is withheld by your employer, and you will get more money on your payceck.
- Similarly, when you decrease the number of exemptions, more tax is withheld by your employer, and you will get more money on your payceck.
- Bear in mind that increasing or decreasing your exemptions has NO IMPACT on the overall taxes- it just controls how much is taken from your paycheck.
- If you increase the exemptions to a very high number, you might owe taxes on next years taxes, and this is not recommended. So be careful with the number of exemptions you actually pick.
- Use this W4 Calculator to calculate your exemptions for next year.
- If you have not yet done your taxes, you can file your taxes online using any IRS approved tax filing services such as :
TurboTax, H&R Block, Taxbrain, Complete Tax, FreeTaxUSA
