I'm just wondering what should I claim for allowances on my W-4 so that I don't get screwed in the end on my taxes? I don't want to end up paying in. The way I set it up today I put Married- Zero allowances- with $10 extra taken out of federal and $5 extra taken out of State. I can easily change it and would appreciate anyone's input on what's the best way to go about this. Thanks!
2006-07-26 03:36:55 · 10 answers · asked by jessicamarie0572 3 in Business & Finance ➔ Taxes ➔ United States
Just so that we're clear, I'm not searching for a huge refund I just don't want to pay in at the end.
2006-07-26 03:51:50 · update #1
talk to your tax preparer
2006-07-26 03:39:48 · answer #1 · answered by Anonymous · 0⤊ 1⤋
some people claim extra allowances for kids when they don't have kids. some people claim as they do just so they would get a refund back. Both are silly and improper. Others make sure it comes out even so the government doesn't earn interest on their money. Actually if you are trying to get a refund it means you can't manage your own money well.
If you're single you claim "1", yourself.
if you are having $10 extra taken out for federal and $5 extra taken out for state and someone at work has advised you this is the best way, then go with it for one year and see how it reflects on your taxes. You didn't say what your husband was claiming.
Since you just got married you only have 5 months of married life on this tax season and the first year of married life probably won't rreflect as you want, you'd probably need "one full year" to make determination. So I suggest you play it by ear. Leave it as is for tthis year and ask your accountant when you do your taxes in April what they suggest for you to do.
2006-07-26 03:48:53 · answer #2 · answered by sophieb 7 · 0⤊ 0⤋
Make sure that if you changed your last name, that you have payroll change it (otherwise an e-filed return can get rejected) and that you update it with the Social Security office.
Your taxes sound ok, but it all depends on what you are making as a family income. Try projecting what your income will be for the year then estimate the tax. That is your best way of knowing. Good luck!
2006-07-26 08:01:07 · answer #3 · answered by Molly 6 · 0⤊ 0⤋
My personal recommendation is the prepare a pro-forma return. In other words, pretend you are filing your year end tax return for your spouse and your self now. Use your best estimates for a full return. Once you have a total tax number, you can work backwards to determine how many exemptions will result in the correct withholding amount.
2006-07-26 12:57:39 · answer #4 · answered by STEVEN F 7 · 0⤊ 0⤋
This should give you a refund. The only problem with letting them take out extra tax is that you are lending to the government interest free. If you would like to break even a bit better, talk to an accountant or a financial advisor. They can look at your specific situation and give good advice.
2006-07-26 03:39:51 · answer #5 · answered by curiositycat 6 · 0⤊ 0⤋
Sounds like you have it covered. Another deciding factor would be if your spouse works. If you both work, your spouse should also make some changes or you could still end up owing.
2006-07-26 04:39:57 · answer #6 · answered by lcmcpa 7 · 0⤊ 0⤋
I agree with those who recommended you talk with an accountant. My husband and I spoke with our accountant friend, and he gave us very specific W-4 advice based on our particular financial status.
Good luck, and congratulations on your new married status!
2006-07-26 03:47:56 · answer #7 · answered by A Designer 4 · 0⤊ 0⤋
I just claim single with no dependents. I get plenty back at the end.
2006-07-26 03:45:33 · answer #8 · answered by Xena 3 · 0⤊ 0⤋
http://www.irs.gov/individuals/
go to the IRS website. There is a link on this page to a withholding calculator. This will aid you in your specific situation.
2006-07-26 08:42:08 · answer #9 · answered by aka Astra 2 · 0⤊ 0⤋