my husband and i have three kids. we both work. i wasn't working previously and i just got a job and claimed one since he claimed me and our three kids on his. on his w4 he claimed 5. he obviously needs to change it since i am not a dependant of his since i have a job now. so does he claim the kids? he makes more money that i do so more taxes would be taken out? or should i claim the kids so the taxes are taken out of my check rather than his. and is it best to have money taken out of the check so you get it back or best to...well, i don't know the other options. filling out a w4 confuses me, although i can do our taxes!! ;o)
thanks for your help.
2007-06-14 11:39:30 · 5 answers · asked by pwrgrlmanda 5 in Business & Finance ➔ Taxes ➔ United States
Regardless of how your W-4's are filed or income, you can claim 1 exemption for every $3400 in deductions that you plan on having between you and your husband. Using last years tax return as a guide, see how many deductions that you had. This includes the standard deduction or itemized deductions and personal exemptions.
Also, you can adjust for any benefits that are taken out pre-tax like 401(k), flexible spending accounts, and health insurance. Since you have children and are probably eligible for the child tax credit, you need to adjust for that as well.
Assuming that you and your husband don't itemize, you can safely claim 8 ($10,300 standard deduction for MFJ + $17000 in peresonal exemptions = $27300 divided by $3400 = 8.1) total exemptions between you and your husband and come close to breaking even for the year. This does not take into account if you itemize or the child tax credit. Since your husband currently claims 5 exemptions, you can safely claim another 3 exemptions.
As far as how many exemptions to claim, it is a personal choice. Do you want a huge refund? Do you want to owe? Or, do you want to come as close to breaking even for the year? I prefer to come close to breaking even. I never tell people to try to get a huge refund because there are better things that you can do with the money rather than loaning it to the government.
2007-06-14 15:12:33 · answer #1 · answered by Steve 6 · 0⤊ 0⤋
Filling out a W4 when both husband and wife are working is a tricky job, so don't feel bad about being confused.
My suggestion: have your husband drop his exemptions to three, or drop his to four and drop yours to zero. This should keep you from owing any tax at the end of the year, and if you do owe some or get too big of a refund, you can adjust it later.
2007-06-14 18:47:20 · answer #2 · answered by Brian G 6 · 1⤊ 0⤋
If any or all of the kids are under 17, you'd get child tax credits for them, so would probably still be OK leaving it as it is now. Allowances on W-4's aren't just for dependents/exemptions - you can also take allowances for credits and for high deductions.
2007-06-14 18:45:39 · answer #3 · answered by Judy 7 · 2⤊ 1⤋
Ideally the best way is get nothing and owe nothing at the end of the year. The way you currently have it is fine. I claim 5 while my wife goes exempt all year. she would get a bigger a check if she claimed everyone but this way we get more of my check. If i claimed 0 then I pay almost as much as her check would be total.
2007-06-14 18:51:43 · answer #4 · answered by Mike E 4 · 0⤊ 2⤋
If you want a big refund, fill in zero or one. If you don't, fill out 4 or 5 (between you) and expect to pay a small amount.
2007-06-14 18:45:38 · answer #5 · answered by Dan 3 · 0⤊ 2⤋