The past two years I have been getting screwed on taxes.
It went from me getting a decent federal return and paying it to taxes for the state. My parents have always had my taxes done with an accountant and claimed me as a dependent and I think that the reason I owed was I have been pulling a 40k a year income through college.
My question is that I now am filling out my forms for my full time job taxes and am wondering, if I make a normal combined income and only have deductions such as a student loan and no dependents, am I OK claiming 1 on my state and federal tax forms?
chances are filing 1 will be OK, but you will get next to nothing back at the end of the year. Filing 0 is the absolute best way to go, you will get a great return at the end of the year and the amount they take out wont hurt you paycheck to paycheck. I eve sometimes like to have an additional 1% per check taken out for bonus return $$$$
where this works for people who have little to no control over their saving/spending…this isnt a great option (no interest earned). direct deposit to a savings account may be better, but it depends on your situation.
I hate the idea that the IRS takes money tho and holds it all year and gives me no interest.
My goal is to maximize my paycheck and not get a return back. The only thing I want refunded is going to be my student loan deduction which I am ok with which I am just going to reinvest anyways.
I claim 1 and interest from student loans, end up owing NY a few bucks and getting a few hundo back from gov. every year. If I didn’t have the student loans I would be paying on both.
