My parents claim me as a dependent, I’m 20 years old with 1 job. My bookkeeper at work said I have to claim zero. Is she wrong?
- AmyLv 75 months ago
Under the new tax law, being claimed as a dependent doesn't reduce your deductions. You'd be fine claiming 1 or 2.
It does mean that your parents rather than you can claim the tax deduction for paying your tuition. You must be in college for them to still be claiming you despite your age and income.
- SlumlordLv 75 months ago
You can claim however many exemptions you want up to 10 (after which you have to prove you have that many) but if you end up owing to much money there will be penalties and interest.
- Ryan MLv 75 months ago
There is a reason why the bookkeeper is a bookkeeper and not a real accountant or tax professional.
- Coffee DrinkerLv 75 months ago
The bookkeeper shouldn't be telling you what to claim on your W4, but they do have the authority to reject and ignore an obviously fraudulent claim.
However, their advice is the "safe" approach. Claiming Single with 0 allowances means the highest tax withholding rate and the highest chance you'll cover your tax liability and get a refund and not owe the IRS. The downside is that you usually have too much withheld which means you are effectively giving the IRS an interest-free loan.
But its your choice whether to take this "safe" approach or to claim more allowances at the risk of owing.
Also, if you expect your total earnings for the year to be less than $12,000 you can safely claim exempt (if you had no tax liability last year), because your tax liability will be $0.
So the bottom line is that its really up to you. If you want to take the safe approach and don't mind having more withheld from your pachecks to ensure you get a refund, then just let the bookkeeper set you at Single-0.
If you really want to claim more allowances to get bigger paychecks but a smaller refund or potentially owe on your tax refund, then turn in a W4 that represents the allowances you want to claim, and tell the bookkeeper that its your choice and she needs to honor your W4.
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- zipperLv 65 months ago
In your best interest; LISTEN TO HER! The more they take out the greater your refund could be and if you owe IRS you will owe less. In either case you come out ahead of the game.
- EvaLv 75 months ago
She has no say in what you claim. If you claim too many allowances, you can end up owing when you file your taxes. She may have suggested that so that you would not be under withheld.
- Beverly SLv 75 months ago
You should if you don't want to owe in..
- USAFisnumber1Lv 75 months ago
Nope. If your parents claim you then you can not claim yourself. They can only claim you at age 20 if you are full time student. If you are not, then tell them you are going to claim yourself for 2019. If they do it, then it is fraud.
- babyboomer1001Lv 75 months ago
Not necessarily. You AND your parents cannot claim you. However, I am wondering why your parents are claiming you. Are they still supporting you? The number of jobs you have means nothing. Your earnings is what counts. If you are going to school and just working part-time and your parents are still supporting you, then they should be claiming you and so you cannot claim yourself, in that case. So the bookkeeper is right.
- Anonymous5 months ago
Your parents can legally claim you as a dependent up to the age of 26, and as long as they are covering 51% of your living expenses.
If your parents claim you as a dependent, you cannot claim yourself as a dependent. Unless you pay for 51% of your own living expenses and then it's just them fraudulently claiming you.
There are 2 types that are usually interchanged though.
1) Filing taxes, which is what you put for tax credits and a bigger refund.
2) Withholdings from your I9 form. This one you can claim as many as you want, because all it does is shift cash from get it now and have less withheld immediately per check or have more withheld now from your paycheck and have less of a tax bill come tax season.
For #1 you cannot claim yourself so technically yes, it would be 0 IF this situation is the only relevant tax situation. For #2, you can claim as many withholdings as you want no matter what.