Tag Archives for " Exemptions "

2018 TAX BRACKETS

                                                                                                         2018 tax rates and income brack­ets

 

Tax Rate Sin­gle  Head of House­hold Mar­ried Fil­ing Joint­ly
or Sur­viv­ing Spouse
Mar­ried Fil­ing Sep­a­rate­ly
10%  Up to $9,525   Up to $13,600   Up to $19,050   Up to $9,525
15% $9,526 to $38,700   $13,601 to $51,850   $19,051 to 
$77,400
  $9,526 to $38,700
25% $38,701 to $93,700   $51,851 to $133,850   $77,401 to $156,150   $38,701 to $78,075
28% $93,701 to $195,450   $133,851 to $216,700   $156,151 to $237,950   $78,076 to $118,975
33% $195,451 to $424,950   $216,701 to $424,950   $237,951 to $424,950   $118,976 to $212,475
35% $424,951 to $426,700   $424,951 to $453,350   $424,951 to $480,050   $212,476 to $240,025
39.6% $426,701 
or more
  $453,351 
 or more
  $480,051 
 or more
  $240,026 
 or mo

                                                                                                                                                                                                                                

*W4*Let Me Help You to Help You in The Long Run * W4*

                                                   

                                                                     W4

                 
      Let’s help you to not owe tax­es at the end of the year or to give you a lit­tle more back. If you are one of my cus­tomers and you owe after read­ing I’m going to be upset with you, seri­ous­ly. This form does impact your tax­es at the end of the year rather you want to believe it or not.
     SO WHAT IS A W4? A w4 is a form that your employ­er gives you when you first start work­ing at your job and it’s the Employ­ees With­hold­ing Allowance Cer­tifi­cate, it tells your jobs pay­roll peo­ple how much fed­er­al with­hold­ing to tax or hold from your pay­checks. Once that form is filled out it will present a SPECIAL num­ber and that SPECIAL shows the num­ber of allowance you have, and by that Spe­cial num­ber, they deter­mine your with­hold­ing.
     Hope­ful­ly, that part didn’t con­fuse you and your still here. Believe it or not, when I first start­ed doing tax­es I still didn’t know what to put for that spe­cial num­ber. W4 form

    When going through the paper to fig­ure out this once again a SPECIAL num­ber, you have to count your depen­dents because that’s where you get your exemp­tions. That’s a deduc­tion of $4,050 (as of 2016 tax­es). An EXEMPTION is basi­cal­ly a reduc­tion of the amount of income that is tax­able. if you make XYZ for the year and your have 3 dependent’s they reduce the amount of XYZ. Last year that num­ber was $4,000 it changes each year don’t quote me on this but I want to say by infla­tion.
    *if you can’t be claimed as a depen­dent by any­one else but your­self you then get one exemp­tion for your­self. If you are mar­ried with 1 kid under the age of 19 then you get three, and so on.

THE MORE ALLOWANCES YOU CLAIM, THE LESS TAX IS BEING TAKEN OUT OF YOUR PAYCHECK.{ YOU HAVE MORE PEOPLE TO FEED SO YOU NEED MORE MONEY OUT OF YOUR CHECK, IS HOW I EXPLAIN TO CUSTOMERS}
     -EACH ALLOWANCE REDUCE THE AMOUNT OF WITHHOLDING
      -NORMALLY YOUR ALLOWANCES ARE YOURSELF, DEPENDANT KIDS, AND YOUR SPOUSE
 
  The num­ber you claim on your w4 doesn’t nec­es­sar­i­ly have to match the num­ber you claim on your tax­es.
Claim­ing less dependent’s on w4 means that you’re hav­ing more tax being with­held which can result in you being a hap­py per­son once you file your tax­es because you are get­ting a big­ger refund. Also look at it as you’re being the nice con­sid­er­ate per­son your par­ents raised you to be and you’re giv­ing your won­der­ful gov­ern­ment an inter­est-free loan.
If you had a lot tak­en out and didn’t get it all back low­er your with­hold­ing. ITS YOUR MONEY AND YOU WANT IT NOW. Vice Ver­sa if you claimed more allowances and didn’t have the means to do so your gonna owe them some tax­es and you may be penal­ized.
       Below I’m going to break it down a lit­tle more for who­ev­er I may have con­fused, or I need to bet­ter elab­o­rate so the con­cept is well under­stood.

      These are my opin­ions this is what I would per­son­al­ly do, this is not me say­ing this is what any­one should do or this is the best thing to do. I AM ME AND YOU ARE YOU, AND THIS IS WHAT I WOULD DO.

ONLY ONE JOB
-sin­gle one allowance

YOU HAVE A CHILD-
add anoth­er allowance; for each child (got 4kids do sin­gle with 5 one for you and all your chil­dren)

SINGLE BUT WORKING TWO JOBS
-sin­gle zero; due to more mon­ey high­er tax rate you need more tak­en out.

STUDENT NO KIDS, NO SPOUSE UNDER 24 AND PARENTS  CAN CLAIM YOU
-Sin­gle zero allowances

MARRIED AND YOU BOTH WORK- I would say who­ev­er is get­ting paid more or actu­al­ly have a high­er AGI needs should claim.
     .Mar­ried and all the allowances (for high­er AGI spouse)

      -Mar­ried zero allowances(lower pay­ing job)

  

Anoth­er thing is you have a new baby or get mar­ried start anoth­er job I would sug­gest chang­ing your w4.