Whats the maximum number of exemptions i can claim? I have 2 children & my wife. I would like to claim 20.
San Diego, CA |
I cant afford to have a great deal of taxes taken out, and figured that I get around $4000 back every year, and if I claimed more exemptions, I could get to keep most of my paycheck, and still not owe at the end of the year. Is this legal?
In general, you are entitled to one exemption for each person in your family, which is a total of 4. If you have other deductions which will lower your tax liability, you may be entitled to take additional exemptions. However, if you owe tax at the end of the year because you took too many exemptions, there is a risk of a penalty for underpayment. You should consult with your CPA or tax advisor before taking any action.