What does it mean when it says on your w-2 exemptions/Allowances : Federal: 8 state:3 local 0 on the right hand side where you name is address is located?

posted

I suspect that is listed there..just to let you know how you set your withholding level at your employer. Your pay allowances do not have to match your tax return exemptions...those numbers only set how much the employer withholds during the year. Lower numbers result in higher tax withholding

If you end up owing the IRS or state when you finish preparing and filing your tax return...then you need to lower your allowances for 2018.

If you come out fairly even or get a refund...then it's OK

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*