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Ask Lane Your Own Question
Category: Tax
Satisfied Customers: 12679
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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Am I withholding the right amount on my paycheck? I am single

Customer Question

Am I withholding the right amount on my paycheck? I am single with no dependents. I usually put in the usual for the amount of exemptions. I am getting $8,000 on my last paycheck, instead of the usual $1,300. I said 0 and take an extra $4,000.
Submitted: 2 years ago.
Category: Tax
Expert:  Lane replied 2 years ago.
Hi,.You're probably OVERWITHHOLDING ....... meaning that you're going to get a Very large refund at tax time.... (which amounts to giving Uncle Sam an interest Free loan for the year)..You might want to consider simply using 1 allowance (and if there are no dependants, that should put you very close to"break-even," at tax time) ... meaning you don't owe additional but don't get that large refund back..FINANCIALLY, this makes much more sense, because you're putting that additional money back into your paycheck ...(so that YOU can save it and make the interest).Make sense?.Let me know if you have questions ....Lane
Expert:  Lane replied 2 years ago.
Have I understood your question correctly?.That they are now WITHHOLDING $8,000 as opposed to $1,300?.Let me know ... I'll be here.Lane.
Expert:  Lane replied 2 years ago.
I'm just checking back in to see how everything's going.
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