grabiner wrote: ↑
Sun Jan 14, 2018 12:23 am
adamsapple19 wrote: ↑
Sat Jan 13, 2018 7:11 pm
Per the below, a single person (in a simple one-job/nothing special situation) would need to update their current W4 withholdings (from 1) to 2 per the below?
"...filers with no dependents, only one wage income, standard deduction, and no other income, credits, etc., filing "Single with 2 Allowances" or "Married with 3 Allowances" (as applicable) will withhold exactly the amount of federal tax due.
" - From: MMM
I've been operating under the assumption a single person would claim just one, per the below from Investopedia:
"You can claim one allowance for yourself, one for your spouse and one for each of your dependents.
This is not correct. You can claim one exemption
for yourself, your spouse, and each dependent on your tax form (through 2017), but you can claim as many allowances
as you need on your W-4 to get the right amount of withholding. The 2017 W-4 worksheet says to claim an extra allowance if you are single and have only one job, or you are married, have only one job, and your spouse does not work. Therefore, the default for a single taxpayer should be 2.
Perhaps some clarification on the antecedent to "this" in "this is not correct" would be helpful.
If one looks closely at 2017 Form W-4
, one will see from lines A, B, and C that, even in 2017, the simplest situations would cause filing W-4s as "single with 2 allowances" or "married with 3 allowances".
That is, a single filer would have a 1 for line A and a 1 for line B. The married filer with one income would have a 1 on each of lines A, B, and C.
The way the 2018 withholding tables have been constructed, the simplest situations continue to suggest
filing W-4s as "single with 2 allowances" and "married with 3 allowances".
If one has been withholding based on a 2017 W-4 with single and 1 allowance, changing to 2 allowances for 2018 will cause a different result (all other things equal) when filing. I've corrected a previous post that wasn't clear in that regard.