Help with w-4.?

Question

I'm married , with no kids. Should I claim married with 1 or 2 dependants?

I'm married, no kids. We both work...he makes a little more...
should I claim married with 1 or 2 on my w-4

Answer 1

Depends on if your spouse works or not, also how much you each are making.

Claim 1, since your spouse is probably also claiming 1. But if he claims 2 than you should claim 0.

Think about your 2006 tax return, when you filed you had only 2 exemptions. One for you, one for him. So unless you have other deductions like one of you is going to school you want to make sure you will be remitting at least what your liability will be.

Answer 2

It's a tough question to answer without more information, such as whether you itemize or not, how many deductions you have (mortgage interest, property taxes, etc.).

If you've already filed your 2006 taxes, figure out how much of a refund you got or how much you had to pay. Adjust your deductions such that you either get very little back or have to pay a little. Roughly, for every $700 in refund you got, add one more dependent on your W-4; for every $700 in taxes you had to pay, remove one. If you're at 0 and still owe taxes, put on your W-4 that you want extra money taken out per paycheck.

Answer 3

As with all withholding questions, the best answer requires more information than you are going to post. The link below is a calculator from the IRS designed to answer your question. It covers more factors than anyone on Yahoo will.