How should I fill out my W-4?

Question

My husband is the one working. I don't work. We have 4 children. We would rather have a big paycheck than a big refund, but we also don't want to owe money at the end of the year.

Somebody, please help!

I also need help with the Michigan W-4, if anybody has any idea about that.

Thanks in advance!

Oops... guess what I meant was "how should we fill up my husband's W-4"?

Also, we won't qualify for the EIC, I think because of the income requirements...

Salary is not under $110K so I can't claim the full credit.

Answer 1

This gets a little tricky to come as close as possible, since the four children make a big difference on your taxes, if you're eligible for the child tax credit for most or all of them. To claim that they have to be under age 17 at the end of the year, and your AGI must be under $110K to claim the full credit.

You don't give enough info for anyone to just give you a number to put on the W-4 - would need to know things like expected AGI, expected itemized deductions, and ages of the children. But use the worksheet attached to the W-4. If you'll receive a child tax credit, you'll also need worksheet 8 in Publication 919 to figure the effect of the credit to fill in line 5 of the worksheet on the W-4.

If nothing much is changing this year from last year, and you got a big refund for last year, you can safely adjust the W-4 allowances up - the number to use would depend on your tax bracket and on the size of the refund.

For Michigan, claiming the 6 people who will be exemptions should bring you fairly close.

Good luck.

Answer 2

If you don't work, you won't be filling out a W-4, though your husband will. The best way is to use the worksheets on page 2 to fine-tune the withholding estimates.

Answer 3

Claim 4, on your state as well. The more exemptions you have on your w-4 the less they take out of your check. You will still qualify for EIC on your federal refund so you shouldn't have to pay out anything.