How Many Allowances Should I Choose on My W-4?

"How many allowances should I choose on my W-4?" First, lets define form W-4 and what it's used for. Form W-4 is used to determine the right amount of federal income taxes to be withheld from your paycheck. If you have the right number of allowances on form W-4, then you should have the right amount of income taxes taken out of your pay as you go through the year. When you get to the end of the year, the goal is to not have a refund or a payment, but it's not an exact science. The IRS says if you are within $500 on either side then you have filed out form W-4 correctly. There is a worksheet on form W-4 that walks you through a series of questions. You answer the questions as accurately as you can and that will determine the number of allowances that will be used for withholding income taxes. We have a calculator on our website where you can go in and put a different number of allowance into your payroll for each pay period and see what the result would be, how much income taxes are withheld, and what it looks like. For more information, visit: http://www.mybreedlove.com/ or call us at 888-273-3356.