Should I claim a dependent on my paycheck or will it hurt my tax return?

[daniellefa]

<p>I got a raise last week, and i make around 90 hours a week in the summer, but now with the raise i've had $700 come out of my paychecks, and im thinking about adding a dependent to my paycheck.</p><p>I currently am claiming single on my paycheck, but I have a family of four.Obviously something needs to change, but I dont want to owe when I file taxes.</p>

[bwa · Accepted solution]

With the exception of how much is withheld the number of allowances on your paycheck has no effect on your tax return.  The more allowances (dependents) the less withheld and the smaller your refund at the end of the year.  However, you want the smallest refund possible.  That's because you're getting the money early during the year in your paycheck, not loaning it to the Government and getting it back later.

[eleazariv]

But what if you don't mind that you don't get it during the year and prefer to get it at the end for a larger tax return?

[Texas Roger]

Here is a link to an IRS calculator you can use to determine how many withholding allowances to claim: http://apps.irs.gov/app/withholdingcalculator/