Claiming Dependents on Taxes

When it comes to claiming dependents on your tax return, many people believe that if you do not claim dependents that you will not get a high refund. Some people also believe that it is always good to claim a high exemption throughout the year. The problem with this is, if you have children or someone that is living with you it may be okay to claim that high exemption on your earnings. However, the problem with this is that those people who are single or married and do not have any children they wind up owing the IRS. You have two simple rules that people can remember,

The first rule that you should remember when you filing out your W-4 form with your employer is to. If you are, single and make more than $25,000 ($30,000 if married) and have no types of dependents. You should claim a low exemption on your tax return. You can also advise the company to withhold more from your taxes each pay period. With this option, you may not receive a high paycheck on payday and you will see a high tax withholding. Just remember that when it is time to file your taxes you will not have to owe. You can keep your money, and not have to give the IRS more of your money then you already have.

The second thing to remember is that you have the option to itemize your deductions. Let me explain what I mean if you do not know. When I say, itemize your deductions, I mean you should start saving the receipts for expenses that you incur throughout the year. These things can include but not limited to things like hospital bills, insurance deductibles, prescriptions, real estate taxes, general sales taxes, even local taxes (if they apply). You can also deduct non-reimbursed employee expenses. When I say this I mean you can deduct expenses incurred on your job that have not reimbursed to you. These are things like uniforms, union or professional dues, office supplies that you purchase, and time you use your vehicle to run errands for your office. Remember that commuting to and from work is not a portion of this deductions.

If you remember these two simple things, you will be able to receive some sort of a refund. You can also use this rule for single and married people who have dependents. The reason that I say this is because if you have a dependent that does not guarantee them a refund. I say this because, if you make over the $30,000 ($40,000 if married filing jointly) you will still need to have some extra deductions. I tell you all of these things because I am a tax preparer for a living. I see people go through these types of things every year, and every year I hear myself give out this advice. If you just use any one of my suggestions, you will have some sort of refund on your tax returns.