Family Taxes?

Question

I will be the only one working between my wife and I. We have two kids one a new born and the other 4 years of age. What should I claim 1-4? Should I claim 2 or 3 now and 4 dependents at the end of the year?

Answer 1

Over the years, it has mattered less and less what you claim on your w-4; the rates have not kept up with changes in the tax law. Try going to Paycheck City and it should tell you how each added exemption will affect your refund.

Answer 2

At the end of the year when you file your tax return, definitely claim all 4 that you're entitled to claim.

If you claim just 2 or 3 on your W-4 form, you'll most likely get a refund at the end of the year. If you claim all 4, your individual paychecks will be a little larger, your refund smaller. So it depends on whether you'd rather have the money through the year, or get a larger refund.

Answer 3

If you got a refund last year, claim 5 exemptions this year,you are allowed one more than you have if you got a refund last year, when you file, claim your four of course, but don.t let uncle sam keep your money for a year without any interest. Also be sure to look into child tax credits, earned income credit, and telephone tax rebate this year.......Nuf Said

Answer 4

Get all your paperwork together along with W-2's ,Social Security cards for everybody in the family and your ID. Next,look in the blue pages of your phone book under U.S. Government for the Internal revenue Service - Taxpayer Assistance Division office near you. Not only will they fill out the proper form for you,but they will also file your taxes for free.

Answer 5

It really depends on if you want a big refund ~ or if you want just enough so that you don't have to pay in? Don't forget you will have child tax credit for 2 children.
You could ask a bookkeeper or an accountant for their advice based on your take home pay.