My husband and I have 2 kids and him and i in the house. How many dependents should each of us claim at our current jobs?
2007-01-18 08:36:12 · 4 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
It depends on where you want to be at this time next year. If you want a large refund, withhold at the married but withhold at single level with 0 deductions. If you do not mind a big tax bill, withhold at married and 12 to get the most money up front - beware this can cause tax shock when you find out what you owe. If you are able to put that extra money aside and earn interest, you will be ahead, but if you spend it - look out. The rest depends on whether you itemize your deductions. If you do not, you can withhold at a married and 2 each. If you do, you can increase that number as your deductions goes up.
2007-01-18 09:05:11 · answer #1 · answered by Anonymous · 0⤊ 0⤋
If both of you are working, you need to use the worksheet for dual earners on page 2 of the W-4 form. The withholding tables are designed only to deal with one working spouse. So you can't just use the standard method of taking the marital status and counting the number of dependents. If you do that, you will end up being underwithheld and will owe tax at the end of the year.
2007-01-18 08:44:02 · answer #2 · answered by jseah114 6 · 0⤊ 0⤋
If you want a larger refund check, each of you claim Single 0. Then at the end of the year, file Joint 4 on your return. However, if you need more money during the year, each of you file Married 1. There is a chance you will have to pay in by doing the latter, but some cases require more cash throughout the year. Good Luck.
2007-01-18 08:46:49 · answer #3 · answered by Debbie 4 · 1⤊ 0⤋
I think -THINK- you can only claim the kids, you can't claim each other...I THINK... don't take my word for it I don't want you to get audited!! ;) But the kids are dependant on you-- ask your employer..you might be able to claim yourself, too.
2007-01-18 08:45:42 · answer #4 · answered by misteri 5 · 0⤊ 1⤋