I am recently married and just switched jobs. My salary is $60K and my wife's is $75K. She is currently claiming 2 allowances and filling single. I need to adjust her W-4 and submit mine for my new job. We are buying our first home and estimate that next year we will have $28K in interest to itemize...
My questions are:
A) how many allowances should we claim on both our W-4 forms
B) should we claim married or married, but withhold at higher single rate?
2006-11-14 01:55:05 · 6 answers · asked by 55reasons 4 in Business & Finance ➔ Taxes ➔ United States
This is a variable question. Do you want your money now, or as a refund?
My household income is about $105K combined, we have one child and a mortgage with about $18K/year in interest. We both claim married zero and get about $4,000 (Federal a year). In California (the state we live in, even at this level we get little if any back or pay around $100).
Since your income is higher and so is your mortgage, you will have a higher return, however if you have extraordinary income (Stock sales, etc) that put you into an alternative minimum tax category, this could lower that refund.
If you want more money now, claiming 1 exemption each puts more in your wallet.
Exemptions can be changed anytime you feel you should. If you file your 2006 return and see you are still getting a huge refund, up the exemption to have less tax withheld.
Good luck.
2006-11-14 02:15:44 · answer #1 · answered by Jen 5 · 0⤊ 0⤋
Use the worksheet on the back of the form W-4; it is for two wage earner households. Right off the top of my head I will tell you it will be best for both of you you to put down "married, but withhold at higher single rate" and claim zero.
2006-11-14 05:07:03 · answer #2 · answered by acmeraven 7 · 0⤊ 0⤋
If you want a nice refund when you file your return, both of you should do Married Zero. Filing the W-4 with Married Two should still give you a refund, assuming that you will not have a significant amount of other (interest, dividend, capital gain, etc) income. If you want to cut it close, I'd bump the exemptions up to 4.
2006-11-14 02:01:31 · answer #3 · answered by jinenglish68 5 · 0⤊ 0⤋
You both need to go trough the W-4 form worksheet and follow the instructions. Generally, I would advise that the lower paid spouse claim married with zero exemptions and that the higher paid spouse use the deduction worksheet.
2006-11-14 04:05:50 · answer #4 · answered by waggy_33 6 · 0⤊ 0⤋
when you have two jobs you absolutely do not claim the same way on both you can actually make a choice, claim all you are eligible for on the higher paying of the two, and claim only your status on the 2nd lower paying or split between the two
2016-03-28 05:13:54 · answer #5 · answered by Anonymous · 0⤊ 0⤋
www.irs.gov
2006-11-14 02:10:19 · answer #6 · answered by Anonymous · 0⤊ 2⤋