Question

Most of you have indicated in your bios that you are employed. How many exemptions did you claim? Do you get a refund come tax time? Is this a good or bad thing?

Answer 1

Basically, there are two tax exemptions:

No.1) Personal exemption: the married persons those who are filing jointly claim this deduction for their spouses. This should be one-time deduction, meaning no-exemption claim by other taxpayer regarding the same relief – suppose husband claims such exemption for his wife and at the same time the wife can’t show his husband is depended to her.

No.2) Dependent exemption: there are 5 exemptions at the most – one exemption to 5^th exemption. Amount of exemptions ranges from $4,050 to $20,250. The condition of claiming such exemption is that such dependents are family members and staying with the taxpayers for the last half of a year.

Refund:

Taxpayers get refund since there are few excess payments of taxes to tax authorities. Checks are issued by the authority to the taxpayer with the amount of overpayment of tax.

This is a good thing, since it indicates flexibility.

There may not be exact amount of tax calculation while filing returns – sometimes this happens because of getting inadequate figure of taxable income at the period-end.

Or, there may be any mistake in calculations.

Since there is refund-option, such excess payments are refunded but not forfeited.