Wrong tax status- help??

**kae** · 01-07-2012, 07:13 PM

A friend and I were comparing our pay stubs (we work in the same school) and I noticed that our Federal Exemption Statuses were different. We wondered why and it seems that I have been claiming the status of having a dependent. I do not, and never have had, a dependent. I have NOT claimed dependents on my federal tax returns. However, I am worried about how this has been affecting my paychecks and if it has affected my IRS returns/what I might owe. I have contacted my HR but, being a Saturday, I won't really be able to talk to them until Monday.

Does anyone have any ideas on how this could have/will affect my paychecks and/or tax claim? I guess I'm just kind of freaking out because I've worked at this school for three years and, knowing little to nothing about paying federal taxes, I'm a little worried that I'll owe a ton of money to someone!

Any words of wisdom?

**Buckeye5** · 01-07-2012, 08:40 PM

My guess is that when the W4 form was filled out for tax exemptions, you included yourself, which there is aline on the form for this, and I think the govt. wants you to include yourself. How it will afftect your taxes would be that you wouldn't get as much of a refund (if any at all, dependint on your circumstances) but someone who claims single and zero would be eligible for more money back. You are gettin back more in your paycheck then someone else who claims zero also. So if you change the exemption you will have an increase in whatis taken out of your fed. taxes, so your take home is less. Hope I explained this good enough. You could probably go to irs.org for info also, don't worry so much about it, just when you do your taxes you will know if this how you want to keep it, really if you do owe it shouldn't be much at all. hope this helped a bit.

**hmcart** · 01-07-2012, 09:03 PM

well I dont have much to add to that! I claim 0 even though I have dependants but its just one of my quirks. I would rather make good and sure I pay in enough instead of owe. I know alot of people may frown on that but its just one of those things for me. I really wouldnt stress too much about it as I am sure it will work out fine!

**Nishu** · 01-08-2012, 12:27 PM

It means that you will get a bigger paycheck and a slightly smaller tax return, and that's all.

I would go to the calculator and try to figure out how many you need to claim to break even. Honestly though, it's very unlikely you will have to pay anything back from claiming yourself. I would leave it as is.
2012 Withholding Calculator

**Ponderer** · 01-08-2012, 01:31 PM

I actually use the calculator at least 3 times a year and adjust my W4 accordingly. I opt to have more taken out earlier in the year and then when the majority of my tax liability is going to be satisfied I then change to have less taken out. My goal is two fold. I make sure to break as close to even as I can at year end and I have more in my paychecks in the 4th quarter of the year when utilities go up and the holidays come. It works out very well for me.

The bottom line is that you do not want to use your tax return as a savings account. You want to have that money in your paychecks so that you can use it wisely for yourself instead of letting the government use it tax free.

**kae** · 01-08-2012, 04:08 PM

Thank you everyone so much for the reassurance! I was mostly afraid I was going to get in trouble for doing it, as it was a completely inadvertent mistake! In fact, I have a friend who gets almost the same paycheck as me, and is also single, claims no dependents on her taxes, etc. and got back twice as much as me last year on her tax return. I was wondering HOW it could be so different- now I know!

Ponderer- I agree! Though right now I would rather get a little back than owe, I know best case scenario is breaking even. I'm not upset about the small return I will get- I was only upset that I was going to owe a whole lot for my mistake on past returns, or be in trouble somehow. It is a weight off my shoulders to know that this shouldn't be the case.

**frugalfranny** · 01-08-2012, 04:17 PM

If you have been claiming that for 3 three years and owed no taxes in the past years...........you should be okay......all things still being
equal.

The IRS only gets picky when you claim more than you should.........in other words......you are ONE........so claiming one is okay........your past years filing should tell you if you will be okay money wise.

**Ponderer** · 01-08-2012, 11:35 PM

There are times when getting a return is unavoidable. I will get about $1000 back simply because I got several bonuses this past year and they were heavily taxed. I also have some unusual things going on with this return, including $15,000 in medical expense that I can deduct.

As far as how many you claim....I started out as single and 2, went to single and 5 and in August switched to single and 11. This was based on using the IRS website and their recommendation based on where I was at by using my data from the most current pay stub I had at the time. If they recommend 11 then I feel safe doing it. I have never had a problem and have done things this way for about 5 years now.

**Nishu** · 01-09-2012, 01:13 AM

We claim 10 and still get a refund. I thought it was because of a bonus, but I recalculated it without the bonus and it still said to claim 10.

Kinda weird.

**MelissaS** · 01-09-2012, 04:54 PM

This is the first year that we are claiming 9. I'm REALLY nervous about it. Normally we claim 0-4. NEVER 9. I'm scared out of my mind that we'll have to owe. But I read the Dave Ramsey article somewhere to use the calculator so you can break even, or owe just a little (he said your goal is to be $100 each way). I guess we'll see in a little while how bad we screwed up if we did. I sure hope not!!

**Ponderer** · 01-09-2012, 05:25 PM

Originally Posted by MelissaS

This is the first year that we are claiming 9. I'm REALLY nervous about it. Normally we claim 0-4. NEVER 9. I'm scared out of my mind that we'll have to owe. But I read the Dave Ramsey article somewhere to use the calculator so you can break even, or owe just a little (he said your goal is to be $100 each way). I guess we'll see in a little while how bad we screwed up if we did. I sure hope not!!

Just remember if it starts to be problematic, as long as you are using the calculator every once in awhile and putting in actual pay stub numbers and such you should be able to adjust and correct if necessary. :-)

I think the mistake people make is that they claim something at the start of the year and then do not think to check and adjust if necessary.

**Nishu** · 01-10-2012, 09:52 PM

Originally Posted by Ponderer

Just remember if it starts to be problematic, as long as you are using the calculator every once in awhile and putting in actual pay stub numbers and such you should be able to adjust and correct if necessary. :-)

I think the mistake people make is that they claim something at the start of the year and then do not think to check and adjust if necessary.

I do this too, just check it periodically through the year. The calculator will adjust your allotments based on how much you've made and paid up to that point, rather than just give you a whole year figure. (I hope that makes sense.)