I am a married, 20 years old, pregnant, an live in California. The baby is due on November 20th. Half of the year (unitl about July) I was claiming 2, then the rest I have been claiming 3. My husband's gross income is about $1,500 a month. As of last friday I alone have paid $8,882.46 in taxes so far. Am I claiming the right amount to get the most out of the money I'm making. I know pretty much NOTHING about taxes. How much do you think I will get back?
2006-09-25 18:56:42 · 5 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
To answer properly, I need to know a lot more than what you listed. Fill out the W-4 worksheet as if the child were already born. Or, if you had your taxes done at an H&R Block or similar place last year, just drop in with your and your spouse's last pay statement (check stub) and let them figure it out for free.
If you decide simply to use an answer on this board, since you and your husband both work, I suggest you both claim Single on your W-4. Have the one with the higher income claim 3 (one for you, your spouse, and your child), and have the one with lower income claim 0. This is a safe way to insure you withhold enough, but not too much. This isn't as safe as filling out the W-4 worksheet or seeing a tax professional, but it is close enough most of the time.
2006-09-26 02:29:03 · answer #1 · answered by TaxMan 5 · 0⤊ 0⤋
"Most for your money" depends on how well you handle money. Personally, because I handle my finances very well, I would want to have no tax withheld and pay at the end of the year because I can make my money work for me throughout the year even if it's just in a simple interest account. It's better than you get with the government. On the other hand, if you tend to spend and not save, then "most for your money" is having the government keep it, and even keep to much, so you can get a nice chunk back at the end of the year that you would not have been able to save by yourself.
In the end, you will owe what you owe at the end of the year and you will either pay, get a refund, or break even (the ideal situation). Given that you're expecting a baby soon, you might actually have enough medical expenses, etc. to be able to write them off, among other things, and potentially get a little something back. No one can tell you how much that would be except your tax professional when doing your taxes.
2006-09-26 11:01:12 · answer #2 · answered by misslabeled 7 · 0⤊ 0⤋
Fill out a 1040A real quick.
If your only income is truely $1500 a month or $18,000 a year you will likely get everything back. Use 2005 IRS amounts your personal exemptions are bout 3,200 each. The baby will be born by 12/31/06. You can deduct 9,600(3 x 3,100) and the standard deduction for a married couple is 10,000. $18,000 - $9,600 - 10,000 = -$1,600. You will also get a Child tax credit if $1,500 which is refundable. You can fill out the 2005 1040 from the Irs link below.
2006-09-26 12:35:32 · answer #3 · answered by ToServe 2 · 0⤊ 0⤋
You do not mention your income so no prediction, The lower earning spouse should claim Married zero while the higher 1 takes all deductions in order to play the tax table correctly. If you have a house w/mortgage add 1 deuction.
2006-09-26 11:45:00 · answer #4 · answered by vegas_iwish 5 · 0⤊ 1⤋
A good start for you is to fill out the W4 worksheet available from the IRS home page:
http://www.irs.gov/
If that doesn't help you, I know that California has plenty of free tax help available - check with your local city and/or community college for a list of resources.
2006-09-26 02:07:39 · answer #5 · answered by Chris H 4 · 1⤊ 0⤋