now as far as the amount of money the government is taking, what can i claim to reduce that amount, i dont have any kids and am not married, so claiming 1 or 0 is really all i can claim. or am i wrong.
its not that i dont trust my dad, but i feel with what i make and what amount of taxes i have given i should recive more.
granted i am a pure newbie when it comes to taxes so i guess i still have a lot to learn
The guys are correct; exemptions claimed are just a way of paying estimated taxes toward your total annual obligation which you figure out when you file your tax return. You want to come out even on April 15. Other than that, do these in the following order:
1. Pay off your credit cards each month.
2. Enroll in your employers 401(k) or 403(b) and maximize any match money.
3. If no 401(k) available, make monthly deposits to an IRA so as to defer any taxes up to the annual maximum.
4. Buy a house so you can deduct the loan interest while the house gains value. Great time to buy a house now. If you are handy, buy a fixer cheap, live in it and repair it. IRC 121 allows you to sell every 2 years and avoid the taxable gain. Then buy another. And another. And another. Avoid condos.
5. Keep health insurance at all costs and consider disability insurance. As a single person you don't need life insurance yet.
6. Keep your FICO score above 700, higher is even better.
7. Don't sign up for a big installment loan on an expensive car.
8. Delay investing in the stock market until you are 50 and can afford to lose everything you put in.
9. Marry a rich girl. Or a hard worker, at least.
10. Don't vote for Democrats.
Print off this list so you can refer back to it. This advice is worth what you paid for it, but I imagine that most of guys here would agree with me, especially #9. If you question any item, ask your dad; dads get more intelligent as you get older. Good luck.