"jIM" <noreplysoccer[at]hotmail.com> writes:

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Zero withholding exemptions claimed. Like the line says,
"Number of allowances you are claiming."
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$106 more. Like the line says, "Additional amount, if any, you want
withheld".

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No, it means zero allowances.

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They are related. One withholding allowance removes one personal
exemption's worth of income from the *withholding calculation*.
Withholding allowances have no effect on the amount of total tax\
(i.e. tax withheld plus tax paid with the return) you end up paying.

Depending on your tax circumstances (lots of non-wage income,
lots of deductions, etc.) you may legitimately claim more (or less)
allowances than exemptions. For example, you may only have two
exemptions, but because you have lots of deductions, you may end
up claiming six allowances on your W-4 to avoid being over-withheld.
Conversely, you may have a lot of non-wage income, so you may end up
claiming no allowances in order to avoid being under-withheld.

--
Rich Carreiro rlcarr[at]animato.arlington.ma.us

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That means zero allowances. This means they will withhold the maximum
amount of taxes. Unless...

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It means $106 MORE (per paycheck) than with 0 allowances. I believe
this is the intent of this line: to allow more taxes to be withheld
than with 0 exemptions. You can also use this line to fine-tune your
withholding if, for example, you're between allowances.

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I'm not so sure about this. And the IRS's own withholding calculator
certainly disagrees. My wife and I both had allowances last year and I
believe we got the withholding right to withing $50.

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Yes. Your allowances only determine how much money is withheld from
your paycheck. Your exepmtions are the things that are used to
actually compute your taxes. Generally speaking, one exemption equals
one allowance, but that doesn't get in to the realm of credits and
deductions. And that gets a whole lot more complicated. How much does
one exemption equal in itemized deductions? Well, it all depends...

I HIGHLY recommend the IRS's withholding calculator. You can find it
at:

http://www.irs.gov/individuals/artic...=96196,00.html

I used this last year and got our withholding right on the nose. In
order to do so, I had to claim 8 allowances and my wife 6, despite the
fact that we have no children. But once we factored in charitable
donations, state income tax, mortgage interest and the credit for my
Prius, those turned out to be the correct numbers. At least... I hope
they're the correct numbers. I'll let you know in a month or so. :-p

--Bill

I used an ADP calculator to adjust our 2007 W-4 so we do not get a
refund in 2008...

1) ADP suggests zero is put on line 5- is this zero taxes taken out, or
zero exemptions claimed?

2) ADP is suggesting to put $106 on line 6 of W-4 is this the total
taxes taken out, or $106 MORE than what is taken out with 0 exemptions?

3) ADP has this note as well- please help interpret- "If you have a
working spouse. figure the total number of allowances you are entitled
to only one form W-4. Your witholding will usually be most accurate
when all allowances are claimed on the highest paying job and zzero
allowances are claimed on all others."

Does this mean zero allowances is zero taxes taken from spouses
paycheck?

if someone needs specific incomes to give correct answers, please let
me know.

4) Is their a difference between an "allowance" and an "exemption"?
Please explain. Thx.