I'm starting a new job and I have to fill out this W-4
It says
Do you want to claim exemption from withholding?
I've worked previous jobs but forgot what I put
I don't want to owe any money at the end of the year, should I put yes or no?
You should not put Zero as the Withholding and you should not claim to be exempt from tax withholding.
If you put 'exempt', they will not withhold any taxes.
The more Withholding Allowances you enter, the less taxes withheld, and the MORE you will get paid. (If you are not withholding enough taxes to cover your income, you WILL owe it...meaning no tax return.)
If you put 0 Withholding Allowances - They will tax you the most in this case - and the smaller your check. (But The greater your possible refund)
If you put 10 Withholding Allowances - They will NOT take much out of your check. (You will owe taxes on the shortfall)
http://www.irs.gov/Individuals/Employees/Tax-Withholding
You can claim exemption from withholding for the current year only if both the following situations apply.
- For the prior year, you had a right to a refund of all federal income tax withheld because you had no tax liability.
- For the current year, you expect a refund of all federal income tax withheld because you expect to have no tax liability.
