My husband is the only one who works. I am a stay at home mom. He makes good money, but we would like to have more on our paychecks. He claims zero right now on the W-4. We always get a big refund at the end of the year, but we would rather have a little more throughout the year. Would changing what we claim to 2 or 3 change anything.or would it not be that much of a difference?
2007-05-21 06:23:16 · 5 answers · asked by Robbi L 2 in Business & Finance ➔ Taxes ➔ United States
Yes claim your children and get your money now you still get the earned income credit at the end of the year.
2007-05-21 06:31:15 · answer #1 · answered by Anonymous · 1⤊ 0⤋
By claiming zero right now, the maximum in withholding is being taken from his paycheck. If you change what he's claiming, the amount taken each period will be less, giving you more money each period. You end up basically paying the same in taxes, just in a different way.
If your refund is really large, you could probably stand to go up to claiming 2 or 3. Check out Publication 15, Circular E produced by the IRS to see what the difference in withholding will be. It's broken down in charts according to filing status (married filing joint, single, etc.) and pay periods. From there you can probably estimate what would be a safe switch without forcing you into having to pay at the end of the year.
Go to http://www.irs.gov/formspubs/index.html, click on publication number, and publication 15 should be at the top.
You can also check out the tax schedules to see how much you'll need to pay at the end of the year. Click in the search box on the IRS website (www.irs.gov) and type "tax rates". The first result should be the current year's schedule.
If you itemize or have other issues, you might need to talk to your tax advisor.
Hope this helps!
2007-05-21 13:55:35 · answer #2 · answered by starlight_chic06 3 · 0⤊ 0⤋
Here is a link to a paycheck calculator so that you can figure out how much will be taken out of your husband's salary if you do claim 2 or 3 for federal allowances instead of claiming zero.
Here's the link:http://www.paycheckcity.com/netpaycalc/netpaycalculator.asp
2007-05-21 14:11:56 · answer #3 · answered by MarineMom 6 · 0⤊ 0⤋
Follow the instructions on the W-4; you may also be entitled to advance EIC. Adjust your spending habits though, you won't be getting that big refund.
2007-05-21 13:39:43 · answer #4 · answered by acmeraven 7 · 0⤊ 0⤋
yes, claim your children. But I would do it at the end and claim zero. I just hate paying the IRS if I owed anything, I'd rather have them owe me.
2007-05-21 13:34:31 · answer #5 · answered by matthaumschild 5 · 0⤊ 0⤋