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USA: New hourly job filling out a W-4, single person, no dependents, what's the lowest deduction we can choose? (lemmy.world)
submitted 6 months ago by LemmyKnowsBest@lemmy.world to c/personalfinance@lemmy.ml
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Goal: the least amount of withholdings possible

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[-] deegeese@sopuli.xyz 7 points 6 months ago

The people saying 0 are misunderstanding the question.

If you want the lowest witholdings, you need to put a larger number of exemptions on your W4.

Ideally you would calculate your taxes and find the highest number that still results in you not owing money next year.

If you pick too big a number, you don’t get a tax refund, you will owe taxes, possibly with penalty.

For a single person with 0 dependents, put ‘1’ unless you’re willing to do the tax math to justify a higher number.

[-] LemmyKnowsBest@lemmy.world 1 points 6 months ago

Thank you. I put 1. I guess that's the best I can do, because I am not informed regarding any further "tax math."

The state of California withholds 37% of my gross income. Because apparently that's how they treat everyone in this state. It's maddening and I cannot survive like this. The most I can manage to pull in net every month is $3,000. I'm pretty sure that's considered poverty level even though I'm working full time in a career I went to college for and still paying off.

Some people tell me, "Well the good news is you'll get a huge tax refund every April." But no, I will not get a tax refund next year or the year after that because the IRS garnishes all of my tax refunds after something stupid my (now ex) husband did 10 years ago.

Which is why I really want to minimize withholdings.

Otherwise this is what I'm currently dealing with: Can you imagine what it feels like to go to work 40 hours a week and over 1/3rd of the month I'm basically working for no pay?!

It's absolutely maddening.

I guess over 1/3rd of the month I'm just working for the privilege of living in California.

[-] deegeese@sopuli.xyz 3 points 6 months ago

If I were you, I’d spend an hour on a tax advisor if I couldn’t do the math myself.

[-] dnick@sh.itjust.works 3 points 6 months ago

Well 'the privilege of living in California' is more accurate than it might seem. Everywhere is a tradeoff, and you could figure like 30% is 'the privilege of living in the US', and then everywhere else you might live is a tradeoff between taxes, higher/lower pay rate, higher/lower cost of living, more/fewer options for socialization, better/worse infrastructure, etc. Move out of the US and options increase drastically....from far higher taxes and the 'privilege to live in a European country with lots of socialized services like health care and education' to far lower taxes in some middle eastern countries but being extremely careful about how much skin you show, and maybe don't mention your 'ex' marriage status, to everything in between.

You could move to a place with lower taxes and maybe be happier....or maybe way worse off depending on a thousand other factors. But the tax rate where you live is certainly one of the legitimate things to take into account.

[-] LemmyKnowsBest@lemmy.world 1 points 6 months ago

yep you are so right. I have rolled all that over in my head countless times, and I've lived so many places all over the world, and California really is my favorite. I'm staying. I'm glad we had this discussion so I can start to feel more comfortable with 1/3 of my life being slave labor to beautiful California.

[-] tburkhol@lemmy.world 2 points 6 months ago

If it makes you feel any better, I've always expected around 1/3 of income to taxes. 7.65% OASDI, 5-10% state, 15-20% fed... Maybe even more if you have a municipal income tax. Tack on some pre-tax 'benefits,' like healthcare, life insurance, and parking, and it's amazing how much of a paycheck can be gone before you even get to rent.

[-] Twigs218@lemmy.ml 2 points 6 months ago

https://www.irs.gov/individuals/tax-withholding-estimator

[-] FederatedSaint@lemmy.world 1 points 6 months ago* (last edited 6 months ago)

Yeah you can just say zero. I used to do that back when I was young and didn't earn enough to owe taxes.

The worksheets, exemptions, and filing status data you fill out on a W4 is not reported to the IRS or anything, it's just so they can look up a withholding amount in a table for you, but if you want something different withheld, just say so.

Remember that if you owe taxes that will mean the full bill will come due come tax season. No refund and sometimes a big outlay!

[-] sugar_in_your_tea@sh.itjust.works 1 points 6 months ago

Very similar post by OP, so probably the same problem, in case anyone wanted more context.

[-] originalucifer@moist.catsweat.com 1 points 6 months ago* (last edited 6 months ago)

its 0 . i've alwasy claimed 0 even with 4 kids as a safety net that i wont suddenly have to pay something later.

e. o0o0o you want deductions, then you'll only be able to claim yourself; 1

[-] FederatedSaint@lemmy.world 5 points 6 months ago* (last edited 6 months ago)

This is opposite of what OP is asking. If you claim zero exemptions then your employer will pull the most out of your check, giving you a bigger refund come tax time and smaller net paychecks.

OP wants to do the opposite by having their employer pull no tax withholdings (deductions) from their check.

this post was submitted on 02 Mar 2024
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