From what I understand, the more allowances I claim on w-4 form will allow me to keep more portion of my paycheck from being taken as taxes. So initially I thought I should always try to claim more allowances when possible.
But my friend told me I am going to pay the money withheld with claiming allowance anyway at the end of the year before I file the tax return. In his theory, I am basically piling up more tax to pay for the end of the year by not deducting them from my paycheck.
Am I paying the same amount of money in the end even if I claim more allowances? If what he says is true, then I would much prefer to pay the taxes I need to pay anyway.