According to TurboTax, there is a special table a taxpayer can use to determine how many exemptions he should claim according to his filing status. When using this table, the taxpayer can find his filing status and income and use the two to determine the yearly total value of his withholding.Continue Reading
By not claiming every exemption he is eligible to claim, a taxpayer may be allowing the IRS to take out more money from his paycheck than he actually owes, notes TurboTax. While the taxpayer receives the extra withheld money back in his tax refund, claiming the right exemptions can increase his paycheck and still allow him to receive a tax refund every year. TurboTax notes that an employee needs to file a revised W-4 form for the correct tax year to claim all of his exemptions.
According to the IRS, there is also a withholding calculator that a taxpayer can use to help him decide whether he should revise his W-4 form. When using the withholding calculator, the individual needs to have recent pay stubs, a recent income tax return and possibly estimate values. After using the calculator, the information can be used to help fill in the new W-4.Learn more about Income Tax