Should we change it now or should we wait until 2007?
2006-10-26 05:25:27 · 16 answers · asked by Drewk 2 in Business & Finance ➔ Taxes ➔ United States
It all depends if you want a bigger tax return. When you change it they will take less out of your pay but then your return will be lower. If you can afford to invest the difference do it now. If you have a hard time saving money don't change it.
2006-10-26 05:29:45 · answer #1 · answered by The Druid 4 · 0⤊ 1⤋
It depends on your income level. It's not good to continually change your status, but marriage is considered good reason to change. I've been doing taxes for three years now, and the households that are married with two children get the most. For one, married filing joint receives a bigger deduction compared to the all-time favorite head of household. Also depending on your income you could get a larger return or possibly cut out some of your taxes by itemizing your deductions. One thing itemizing is tricky so make sure you are dealing with someone who is skilled in that area, and not just after the money.
2006-10-26 05:38:27 · answer #2 · answered by sexual chocolate 2 · 0⤊ 0⤋
I have had more than a few clients who ended up owing after they got married. The tax tables for "Married" are built on the assumption that your are supporting two people on the same income so less taxes are taken out. If you are both working, both of you claiming "Married" could haunt you at tax time.
2006-10-26 06:58:22 · answer #3 · answered by Wayne Z 7 · 0⤊ 0⤋
You MUST change your status but you CAN pick "Married filing as single" which won't change your deductions. Basically if you and your spouse make so much money that you'll owe big time now that your're married you will want to do that. On the other hand if you bought a house to live in together you'll have more than enough deductions in closing costs and mortgage interest to make up for the difference. Congratulations on your marriage!
2006-10-26 05:36:32 · answer #4 · answered by Queen of Cards 4 · 1⤊ 2⤋
I did when I got married and ended up owing at tax time. There's really no reason to change it unless you need a little extra money each month. If you do change it, make sure you look at how much is being taken out. Believe me, you don't want to end up owing the government money.
2006-10-26 05:37:24 · answer #5 · answered by MissHelle 3 · 0⤊ 1⤋
Changing it now will just give you more deductions and slightly up your paychecks bylowering your tax liabiility.
Waiting til '07 but filing it at tax time as married ought to just give you more money back.
2006-10-26 06:24:05 · answer #6 · answered by Anonymous · 1⤊ 0⤋
run a few practice forms the forms are free at the library if you both go long form anyway you may make out better on the deductions and so on but if you run a practice online form at a tax site you can delete and get out and know about what the diffrance in savings is
2006-10-26 05:35:48 · answer #7 · answered by Anonymous · 1⤊ 0⤋
If you change your w-4 now the co's you work for won't take out as much tax, so you should get more refund back or pay less taxes. It depends on your income.
2006-10-26 05:30:50 · answer #8 · answered by tom_nearhood 3 · 0⤊ 1⤋
Your employers will keep out less taxes if you do that, if that is what you want. I always file single and zero so they keep out the max taxes then I have a good refund at the end of the year ;o)
2006-10-26 05:33:09 · answer #9 · answered by dodge_bee 3 · 0⤊ 2⤋
Yes, especially if you plan to file your 2006 taxes jointly.
2006-10-26 05:28:25 · answer #10 · answered by Tamborine 5 · 1⤊ 0⤋