Filing Individual Income Tax Returns FAQ. - Page 9

Aww no problem put that money to good use!

So I should put 0?

Either 0 or 1. I recommend putting down 0 that way you won't risk owing anything.

Hi, just read the entire thread to make sure this hadn't been asked lol... I haven't had steady work since about '07 and have been living off life savings up until I got DACA'd and my SSN. So as soon as I could I got a part-time job at UPS for their benefits, seasonal first and they picked me up for regular work. Now the seasonal bit (month and half) gave me a W-2 with under $1500 earned... the question is do I bother filing this year? I haven't filed since '08 if that means anything.

Thanks in advance.

If you have any withholdings you should go ahead and do it. Go some place that does it for free!

I have to disagree with this... to an extent. When you claim 0, you are essentially lending the government money at 0% interest. In fact, the real (nominal minus inflation) return you receive during income tax season will be less than the additional real value you withheld over the course of the year -- because of inflation.

Claiming 0 is for people who are not "savers" -- that is, people who aren't so well at saving or investing money in any interest-bearing account.

I recommend claiming the maximum allowances in which you are permitted to do so (probably 1, in most cases). In an ideal scenario, you would place the additional income you receive in each paycheck into an interest-bearing account; thus, when tax season rolls around you have enough money to pay off any tax dues. You'll actually have more -- the power of compounding interest comes into play. Of course, this is in an ideal world.

To summarize, my basic tenant is as follows: if you're a saver, claim maximum allowed. If not, claim 0.

If you are single, then you are not required to file a federal tax return if you made less than $9,750. You may still want to check if you qualify for any additional tax credits or benefits. They may make filing a tax return worth it.

The filing thresholds vary by state as well (assuming you live in a state that withholds). Which state do you live in?

Florida... ha, hadn't even considered state filing.

That's the problem though many people aren't savers and don't know how to manage their money. :/

I will actually be claiming 1 if I ever get hired.

i claim 2 because I would rather pay during tax time if i have to ( havent for the past 3 years ) and because its extra money during the year. .not a lot but it makes a little difference. .