My husband and I recently took new jobs and have to fill out the w-4's for taxes.
We file jointly, own our home, have a daughter, and like to have plenty withheld to cover our taxes at the end of the year.
If we both check married, no exemptions on the w-4, will we likely have enough withheld by the end of the year to cover everything, or should only one of us claim "married" and the other check "single". I don't want to make a mistake and not get a refund next year, but also want to make sure the govt isn't getting too much extra of our money...
Thanks for the answers.
2007-07-03 08:37:01 · 3 answers · asked by Jenni M 1 in Business & Finance ➔ Taxes ➔ United States
You'd probably still be OK, since you will likely get some tax benefit for your real estate taxes and mortgage interest, and if your daughter is under age 17, a child tax credit for her also in addition to the three exemptions for the three of you.
2007-07-03 08:41:38 · answer #1 · answered by Judy 7 · 0⤊ 0⤋
Do a "what if" tax return for the year. Total up the gross amount you and your husband will earn together. example-25k plus 25k equals 50K. deduct standard deduction of 10,400 and three dependents at 3,350 aka 10,050 for a total of 20,750 subtracted fromt he 50k; leaving you a taxable income of 29,250. On this the federal income tax would be 3,629. If your daughter is age 16 or under you can subtract a 1,000 child tax credit; leaving you a tax due of 2,629. Total up the amount of FIT aka federal income tax withheld and see if it meets or excedes the tax owed. Adjust your W-4 withholding up or down accordingly.
2007-07-03 09:08:56 · answer #2 · answered by acmeraven 7 · 0⤊ 0⤋
If one of you checks the single now how are you going to file the tax returns at the end of the year?
2007-07-03 08:41:50 · answer #3 · answered by Anonymous · 0⤊ 3⤋