i just noticed that at my new job, the pay statement has my Tax Exemption/Allowance at 2 for both federal and state. at my previous job, that number is 0 for both. what does that number mean? both jobs are full time. did i fill in some information wrong? if so, what does it mean? thanks.
Exemptions are usually how many people you can claim as dependants, including yourself. The more exemptions you claim, the less taxes will be withheld and vice versa. You can change these exemptions by filling out a new w4 through your employer. Be careful. If you are claiming 2 exemptions now, but end up claiming less when you file your annual return, you could end up owing.
so since i am single at the moment, that number should be 1 right? crap, i hope i don't end up paying more next year. it's been 2 for most of the year. crap. i will go get it fixed next week.
you'll have more withheld from your paychecks - but come April 15 you'll owe less than in the past - and if excess was withheld - you'll get a refund.
