Tax Law (Questions About Taxes)/Should I file "1" or "0"

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Expert: John Stancil, CPA - 11/4/2009


Question
How do I know whether to file "1" or "0" on my taxes? And what to file after any raises. Is there a chart that I should follow? I just don't want to end up owing money at the end of the year. I know that zero is the safest, but I'd really like to get the most out of my check now. I make twelve dollars an hour working full time, if that helps any. I currently file "1" and gross about $950 every two weeks and net about $713. Any help would be greatly appreciated.

Answer
Jessica,

Thanks for your question.

There is a worksheet that accompanies the Form W-4 that you can use to help you determine the number of withholding allowances you should take.  

I cannot give you a specific number to claim, as there are too many variables in the tax equation for me to give you a valid answer in this forum.

Hope this helps.

John Stancil, CPA

Tax Law (Questions About Taxes)

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John Stancil, CPA

Expertise

I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I teach tax and accounting at a small church-related college. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a part time tax practice for over 35 years. I am a member of the AICPA, National Association of Tax Professionals, and the Institute of Management Accountants. Visit my website at www.johnstancilcpa.com. Also visit my blog, www.thetaxdocspot.com. Prepare and file your own taxes at www.1040stancilcpa.com

Experience

I hold a doctorate in Accounting, and four professional certifications: CPA, CMA, CGMA, and CFM. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I have operated a CPA firm for over 30 years and have taught accounting and tax at the college level for over 30 years.

Organizations
AICPA, FICPA, IMA, NATP

Publications
The CPA Journal, Florida CPA Today, Green Consumer, Green Business, Global Sustainability as a Business Imperative, Palmetto Review, NATP TaxPro Quarterly.

Education/Credentials
DBA University of Memphis MBA University of Georgia BS in Accounting Mars Hill College

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