I just have a couple of general Fed tax related questions, wondered if anybody here has any knowledge of allowances and adding dependants.

 

whew....this is gonna be a hot thread

Have you tried just checking around the internet? I wouldn't think of what you find as gospel, but you'd at least get an idea. Don't those H&R Block places and the like offer free question-asking services in order to get you in the door so they can try to sell you into them doing it for you?

 

All I know about taxes is I have to pay alot of them!!

 

As Far as dependents you have to be responsible for at least 50% of their care (Food, Medical,etc....).

For Other deductions I use a simple rule..

If you spend money that will create an income or is needed to maintain your present job then it is deductable...

For instance you may deduct computer magazines if you are a working in the computer field... You can deduct mileage, clothing, Parking expenses if you are a salesman who has to go to clients.

These are just some examples, but if you give more detail of what you want to deduct maybe we would have a better idea.

Also you might want to pick up a book on taxes... they Have more detailed info..
I use to get the JK Lassiter books, but there are others.

Make sure you drink plenty of coffee before attempting to read.. Tey are Boring... LOL

 

Go on the IRS(.gov) web site.
They have the explanations for everything on there. When I was doing my taxes on paper, and the book wasn't enough, I used to go there and got the answers to my questions.
Now I use Turbotax and it is so much easier.

 

My main question was because for '05 I did not have enough withheld for taxes, so now I owe ($600). I have always claimed 2 allowances on my W-4 (and got a refund), but this year, due to a significant increase in pay, I now am underpaying. I was thinking of lowering the allowances to 1 to have more taken out in paychecks, but I also have a baby on the way (within a week or so) so I was wondering if the deductions from the baby would make the lowering of allowances not needed.

 

The allowance on the W4 only sets the amount of taxes they withhold not the amount of taxes you pay..

You must have other deductions (House, medical, etc..) that will ofset the 600.00.

Also the baby will give you another deduction next year worth more than 600.00. So yes it should offset it.

I would stay with the 2 allowances and after your taxes are done see how much that you get for a refund or have to pay..

If you have to pay lower it if you get a big refund then raise it so you get more in your paycheck each week when you need it..

 

Yeah, I was gonna lower (to 1 instead of 2) so they withhold more, so hopefully I will not owe again...like i did this year. For '05 not enough was withheld so now I owe that $600.

 

You can basically put down whatever # of allowances you like. But remember, and if I have the date right, by Jan 17th of the following year you must have paid in 90% of the taxes you owe or 100% of previous years taxes owed to avoid the underpayment penalty. IMO, owing the gov't only $600 is PERFECT as opposed to having to ask/tell/show/wait for them to refund you $600 that they borrowed interest free. Never make interest free loans to people that are irresponsible, especially those that habitually demonstrate that they can't handle money.

 

That is a great perspective to look at that from. Thanks, now I dont feel so bad about having to pay

 

Lets assume some thugs, I mean agents, came to your house and asked you to pay say $250 a week, just because they say so. Would you ask to see ID, ask for a copy of the Law that allows them to take your money, or just be intimidated due to the nature of what you have seen these people do to others over the years. I guess some would, but not everyone. Yet, most willingly volunteer to pay this tax you do not owe, have no idea where it is going, and what is being done with it. Check out, paynoincometa(dot)com for all those who still believe you actually owe any Federal Income Tax. I started about 12 or more years ago with one book. The Federal Mafia, which was banned by the way. I have paid ZERO Federal Income Tax since then. The Dept of Treasury did manage to steal $210 from my direct deposit Social Security last year (after trying to get this money for seven years), due to a new law passed in 05 by Congress, which they now can take whatever they want, without due process, no name is provided, no documents stating I owed any money, or that they have the right to take this money. There was absolutely nothing in my SSA file in Philly. Nonetheless, I have submitted many documents to the IRS, my Senator, State Rep and Congressman with all my documents (not one of these offices has replied by the way), IRS Code, Constitutional Law and Zero Tax returns, as well as some other information too lengthy to get into on this forum. I stated I would pay this tax they have spent so much time and money to collect, IF, they can disprove the information I have provided, or prove that I owe a tax. After seven years, many many calls, e-mails and certified letters, not one office could do that. Now, this is not tax evasion, as some will probably allude to in posts to follow. If you do not owe the tax, that does not mean you pay this money, just because they demand it, no matter who the heck they think they are. There are few people left that will take the time, effort and courage to stand up for their rights anymore. Irwin Schiff, you are one of my biggest hereos! Ditto to James Trafficant!! You OWE this tax once you file a return with your signature, stating you voluntarily are giving this money to the U.S. Treasury. If you are curious where that goes and what is being done with your money, you will have to take a trip to your local Law library. And you thought they were messin' with you at the gas pumps!!! A couple of other great reference materials are: Defrauding America, The Creature From Jekyll Island, and The Great Income Tax Hoax. Also, you might want to check into the missing paragraph "A" on the IRS code, which states you do not owe this tax. Now if anyone thinks the IRS is a legit agency, you may be interested in buying land in N.O. "The Truth Will Set You Free!" Estimate how much of YOUR money you are voluntarily giving away to the U.N., devide that by say sixty hours of your time to learn what your Rights are, and you should make a pretty decent income with your new part time job. Make no mistake about it, it will be quite a job at that. Might even want to look for a Common Law Group in your area, they have a wealth of information you will not find on CNN, and their support is just outstanding. These criminals do not willingly give up your money that easy. Probably why so many people just pay. I am honored to be one among many that do not! I assue you, they know who I am.... If this post inspires just one person to learn that you do not owe this tax, it was worth my time to write it. All Rights Explicitly Reserved