If you made 75000 and your spouse made 30000, and you claimed single and 1 and your spouse claimed single and 0, and you got a $2000 tax refund, what would you do to adjust it so you got less refund next time? Would you claim single and 2 instead of single and 1?
2007-02-03 02:51:06 · 6 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
Yes, that would be one way. But it would depend upon how each of you was filing your W4 for withholding purposes. Changing from 1 to 2 by the spouse with the higher income will cause much more tax to be withheld than it would for the spouse with the lower income.
Best bet: Both of you should check with your employers and see what the impact on withholdings will be and select accordingly. You should also look into the impact of changing your withholding status from Single to Married.
2007-02-03 02:58:13 · answer #1 · answered by Bostonian In MO 7 · 1⤊ 0⤋
Go to www.irs.gov and use the W4 calculator. You will input your estimated earnings, deductions,and credits and it will tell you how many allowances to claim on your W4 so that you will just about break even at tax time.
If you are married, why are you claiming single on your W4? Change it to married and they will withhold a little less.
2007-02-03 10:56:06 · answer #2 · answered by TaxGurl 6 · 0⤊ 0⤋
I always love getting a refund, like a bonus, but the accountant says "why let the gov't get interest on your money?" So I guess you should raise your withholding. The IRS calculator is a good idea.
2007-02-03 11:00:35 · answer #3 · answered by Lovejunk 3 · 0⤊ 0⤋
you could claim 2 and then have an additional $20 or $50 or whatever withheld from your check, so you dont end up having to pay in.
2007-02-03 12:08:44 · answer #4 · answered by johnec4 3 · 0⤊ 0⤋
Yes you can, but be careful, you don't want to end up owing Uncle Sam on April 15 next year.
2007-02-03 10:54:40 · answer #5 · answered by Gem 7 · 0⤊ 0⤋
go be happy; shhhhh....
2007-02-03 10:59:11 · answer #6 · answered by Anonymous · 0⤊ 2⤋