Thursday, July 29, 2010

I need Accounting/ Legal Advice Re: my workplace.?

Hi, I was wondering what I should do about my current tax situation.





I have been working for my employeer for 1 year now, and on my original W2 form, I claimed ';1'; dependence because I lived with my parents at the time.





After about a year of recieving my paychecks, I finally noticed on a paystub that my bosses accountant had changed my ';dependents'; to ';2'; now, so insted of it being 1 (which is what I signed and agreed to) he took the liberty of changing it to 2, for some odd reason.





Now, will that make me have to pay more taxes at the end of the year, since I was claiming 2, but in actualality I am only claiming for myself.





Confusing eh? Feel free to e-mail me if you have any advice, because my boss/his accountant reassure me that I will actually GET MORE back from the govnm't when it comes to be tax time.





*sigh*I need Accounting/ Legal Advice Re: my workplace.?
The only thing the number of dependents on the W2 does is dictate how much money they take out of your check to cover taxes. I have claimed anywhere from 0 to 7 depending on changes in my tax liability. So, when you go to fill out your tax forms, put down the correct information, and any tax that has been withheld over that will be refunded to you. And the accountant is correct... since they are withholding additional money, you will get more back. You can, of course, go fill out another W2 form and get this changed, if you want.I need Accounting/ Legal Advice Re: my workplace.?
You won't get more back, they are wrong in that. And, you may have to pay more at tax time, because you won't have any write-offs to off set your income.





This is a situation where you should have looked more closely at your pay-stub earlier. It's a keystroke error on the part of your payroll department, but it has been disclosed to you for the entire time you've been working. Unfortunately, there's really nothing that you can do about it, except claim 0 for the rest of the year, and at the end of the tax year file a new w-4 with the payroll department, and make sure that it's correct on paycheck going forward.





ETA- the higher the number of dependants, the LESS tax is withheld.

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