I just got a new job and i am confused as what to claim for the year so i decided to claim 0 and hold out at a higher single rate so we will get more back at the end of the yaer, we file married and joint is this the best move to make? i also am a full time student as well and was told i could also claim exempt, but that means we would get nothing back and we need a lump sum we are expecting a child . any input would be good i am really confused?
2007-06-11 10:52:16 · 4 answers · asked by ftbragg_armywife 1 in Business & Finance ➔ Taxes ➔ United States
First of all, thanks to you and your husband for his service and all the work and stress it brings you both. Also congratulations on the baby!
If a bigger refund is what you are looking for, then claiming "single 0" is the right thing to do. When you claim married and add exemptions, it increases the money you take home in every paycheck, but takes away from your refund at the end of the year.
Your husband's regular Army pay is still taxable, but any combat pay is not.
I don't blame you for feeling confused, it sounds like you have gotten some not-so-good advice. (but probably well intentioned)
Good luck to you and your family!
2007-06-11 14:19:36 · answer #1 · answered by Anonymous · 0⤊ 0⤋
HIS income for the time he's deployed in a combat zone will be exempt from federal income tax. If he's only deployed for part of the year, then only that part of his income will be exempt from federal taxes. YOURS, during that time, will not be.
If you were told that as a full-time student you are exempt, you were told WRONG. If you claim exempt on your W-4 and have any tax liability, you will owe taxes at the end of the year, plus possible penalties, and potentially a large fine for claiming Exempt illegally.
If you claim zero and withhold at the higher single rate, you're likely to end up with a refund - if that's what you want to do, then do it that way.
Good luck - with the coming baby, and with your husband coming home safe.
2007-06-11 19:56:04 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
Being deployed overseas does NOT make your husband's income tax exempt. If he is in a designated COMBAT zone, his military income would be exempt. Being a student does NOT make you tax exempt. Even if BOTH of you are tax exempt, that does NOT mean you will not receive a refund. If you have any taxes withheld, you can file a tax return and receive a refund if your tax liability is less than your withholding. You can even file a return is you had zero income and zero withholding. You will not receive a refund in that case, but you are ALWAYS entitled to file.
2007-06-11 18:12:52 · answer #3 · answered by STEVEN F 7 · 0⤊ 0⤋
You can go down to one of the IRS offices and they will help you and best of all IT IS FREE.
2007-06-14 21:58:03 · answer #4 · answered by K M 4 · 0⤊ 0⤋