I am getting married on Saturday (12th of Aug.)
I also have a two year old son.
I make 27,000/yr before taxes
My fiancee makes 16,000/yr before taxes
We live together
We do not own a house (we rent)
So. Should I claim 6, get 90% of my paycheck, and put like $300/month into a high-gain savings account, or should I claim 1, and get a bigger return?
And how many should my fiancee claim?
2006-08-10 18:13:49 · 5 answers · asked by Fuzzy Logic 1 in Business & Finance ➔ Taxes ➔ United States
Claim 3 (yourself, husband and child) and put away a few bucks each month. It is unlikely you will find a high yield account without a few thousand to put away and/or unlikely it will pay of by April 15th. Your husband is in a very low tax bracket as well, he should claim 3 too.
2006-08-10 18:17:26 · answer #1 · answered by fastcarceo25 3 · 0⤊ 0⤋
As long as you have the discipline to put money away to pay later, you should claim high, and so should your fiancee. The reason for this is that if you put the money in a savings account, you are earning interest on it all year long before you have to hand it over to the government. If you overpay and get a big refund, then you have given your money to the government to use interest free for a year. You definitely come out with more money in the first scenario. However, if you do decide to claim high, make sure you know about how much you will owe in taxes so you can save accordingly. If you can't figure this out on your own, ask a financially savvy friend or an accountant for help. Also, if you have any doubts about your ability to save money up for taxes, as well as retirement, college, etc, claim low and let the government force you to adjust your spending habits.
2006-08-10 18:22:39 · answer #2 · answered by Nicole 4 · 0⤊ 0⤋
Don't claim more than you have a right to - you're just setting yourself up for a big tax bill when you file, and possible penalties. Can you claim your son as a dependent? If so, you should probably claim 3, your fiance should claim 0 or 1. If your son does not qualify as your dependent, then each of you should claim 1.
You don't want to try for a big return - that just means you've been making an interest-free loan to the government.
2006-08-10 19:28:28 · answer #3 · answered by Judy 7 · 0⤊ 0⤋
claim no more than 2...youll get a bigger return and if like most people youll find other things to spend that 300 on....it aint fun writing uncle sam a check
2006-08-10 18:19:08 · answer #4 · answered by MICHAEL M 2 · 0⤊ 0⤋
You'll get a bigger return, but without interest. If you are diciplined enough, go for the high gain.
2006-08-10 18:17:36 · answer #5 · answered by Emm 6 · 0⤊ 0⤋