Currently, my husband is the income provider and he makes less that $40k a year and I do not work and we have 2 kids (5 year and 2 year old) and currently my husband claims married and 2 exemptions should we claim 4 for each of us and does this mean we will have to pay back a bunch of money year end?
2007-04-02 12:57:34 · 5 answers · asked by robmarcy13 2 in Business & Finance ➔ Taxes ➔ United States
You should be OK if he claims 4 allowances, since you'll get not only 4 exemptions but also the child tax credit for your two kids. You probably won't owe any taxes by the time the child tax credits are taken off, so he could probably claim even more without having to pay at the end of the year.
2007-04-02 13:18:50 · answer #1 · answered by Judy 7 · 2⤊ 1⤋
it all depends on whether you would like having a little bit more out of every paycheck now, and pay it back at one lump sum at the beginning of the year,
or if you wouldn't mind having a little chunk extra taken out of every paycheck so that you don't have as much owed at the beginning of the year. If you can handle only having two exemptions, it would be better, but only if you can financially handle it. The least amount of exemptions, the more they take out of every paycheck, so take as few exemptions as you can.
Either way, you pay the same amount. It just depends on when you pay it, all at once or over a year long period. You should be getting the child tax credit, $1000 for each child, do you? Go online and check out all of the other credits you might be eligible for. Then find your adjusted gross income and calculate the difference in your paycheck if you claim 0, claim 2, and claim 4.
2007-04-02 21:48:33 · answer #2 · answered by KC_Meag42 5 · 0⤊ 0⤋
If you can afford to do it change the w-4 to married, 0 exemptions withhold $5 from fed taxes. Then on the tax form (1040 or whatever) claim the 4 exemptions he will get back a good amount back.
2007-04-02 20:14:06 · answer #3 · answered by Anonymous · 0⤊ 2⤋
I assume you are talking about his W4, I think it i a better idea to claim himself and the 2 kids on his W4, to avoid the issue of insufficient tax deducted from his income so he does not have to pay additional tax, and when filing his returns, he can get whatever excess he paid back from IRS.
2007-04-02 20:14:17 · answer #4 · answered by Ola 4 · 1⤊ 0⤋
you would claim 4 on the tax form- and you might be eligible for earned income- not sure and I doubt you will have to pay any taxes and will probably get a refund.
I would recommend changing his withholding to 0, so you do not have to worry about it next year.
2007-04-02 20:06:38 · answer #5 · answered by peaceandharmonyandmercy 3 · 0⤊ 3⤋