If my wife and I both work and we have 2 kids, do we both write 2 for exemptions on our W4? or 2 and sero?

Question

or one writes 2 and the other writes 0?

Answer 1

Talk to a tax accountant. If it were me, I would have the person with the higher income write married (2) and the other write zero. It is really tricky with both people working because your incomes are combined at the end of the year which can push you into a higher tax bracket. Unless you don't mind potentially owning the IRS a little bit at the end of the year, I would err on the side of caution the first year and make adjustments to your W-4 the next year depending on how your taxes come out.

Just remember that the goal of the worksheet on the W-4 is for you to break even on your tax return every year. The IRS does not want to have to mail you a refund check and would prefer not to have to collect more money from you if possible.

Answer 2

My suggestion is to seek help from a CPA who is also a certified financial planner. You may be able to claim up to four (you, your spouse and your 2 children). Depending upon other tax credits you are eligible for and other deductions you have available, you might be able to claim more (some people with lower incomes qualify for this). Your true goal at the end of the year is to have as close to a $0 tax liability or refund. This would show that you were able to have as much of your own money to put toward your retirement and savings or other necessary life expenses.

Answer 3

It depends on how much your combined wages are. If you make more than $35,000 then you need to let then tax you Single 0 also it depends on if you can itemize your deductions. So many things come into play here. You could be taxed Single 1 and not owe taxes but you won't get a high refund.

If you make considerably less than $35,000 It depends on how you want to get your money. If you want the best refund possible during tax time then you both need to file Single 0

If you make considerably less than $35,000 and want money through the year and a decent refund then let them tax you as Married 1

Again if you make considerably less than $35,000 you could be taxed Married 2 and still get a decent refund.

Answer 4

With 2 and 0, you'd probably get a substantial refund if your kids are young enough (under 17) for you to get the child tax credit. Even claiming 2 allowances each, you should be OK if you get the CTC.

Answer 5

The higher paid person should write 2, and the other 0.