I used an ADP calculator to adjust our 2007 W-4 so we do not get a refund in 2008...
1) ADP suggests zero is put on line 5- is this zero taxes taken out, or zero exemptions claimed?2) ADP is suggesting to put $106 on line 6 of W-4 is this the total taxes taken out, or $106 MORE than what is taken out with 0 exemptions?
3) ADP has this note as well- please help interpret- "If you have a working spouse. figure the total number of allowances you are entitled to only one form W-4. Your witholding will usually be most accurate when all allowances are claimed on the highest paying job and zzero allowances are claimed on all others."Does this mean zero allowances is zero taxes taken from spouses paycheck?
if someone needs specific incomes to give correct answers, please let me know.
4) Is their a difference between an "allowance" and an "exemption"? Please explain. Thx.